Could co-living help landlords manage soaring inflation?
As we are in the midst of what many property professionals class as the ‘peak’ rental market of the year, there has been much talk of the challenges tenants are facing.
A recent article in Landlord Today cited that London was seeing a 43% drop in available stock in the rental market, thus meaning huge rental increases and lack of supply for would-be Tenants.
However tenants are not alone, landlords are also facing a huge challenge in the London rental market in the form of their own nemesis, inflation.
In recent times, landlords have seen significant changes to legislation which have in turn increased their costs, 2022 has then added to this is in the form consistent and significant interest rises; but it is the aggressive increase in inflation that landlords are noticing.
The same article in Landlord Today cites rental increases across England as being 3.4% for the last year, with London only actually attaining 2.5%. Although in the last month we have seen the UK inflation figure plateau, we are still currently hovering on and around double digits inflation for 2022.
This means that despite soaring rents in London, increasing costs mean many landlords are at a crossroads with their BTL portfolio where the traditional method of renting no longer offers financial security. Many landlords are voting with their feet by selling all or part of their portfolios.
At Lyvly we're finding that a co-living or HMO model offers an alternative route for landlords thinking of selling their property by allowing them to achieve better returns and beat the inflationary increase. The added bonus with this is that, at a time of significant housing shortage, especially in London, shared accommodation like HMOs alleviates some of this pressure and provides tenants with much needed housing stock.
If you are a landlord interested in exploring how co-living might work for your portfolio, or if you're a landlord who needs support with an existing HMO, Lyvly can help. Lyvly offers a structured bespoke management service combined with a unique approach to renting out property in London, this in turn gives landlords access to net returns that are significantly higher than the traditional rental model.
If you currently have a vacant property, one within a notice period, or are trying to sell your property in London with no success, please contact us through www.lyvly.uk/landlords and we'll be happy to help.
To find out more about Lyvly and what we can do to help, you can contact us on 020 3318 6632 or firstname.lastname@example.org.