As the fallout from misplaced government fiscal policy combined with spiralling interest rates continues to breed uncertainty in the markets, many Landlords are now considering the position of their portfolio.

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A recent article in Landlord Today highlights the additional significance of the current inflationary environment for Landlords. There are many comparisons being drawn between current events and what happened in 2008, with some commentators citing alarming similarities between now and the lead up to the housing market correction that occurred then.

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In the immediate years after the financial crisis in 2008, many homeowners and landlords alike were commenting that they wished they hadn’t sold when they did, especially in light of how the market rebounded from 2012 onwards.  As of July 2022, the FTSE 250 had fallen 12%, Bitcoin was down 33%, gilts had dropped by 15%; but over the same period property values had risen 15%.

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The unknown at the moment is the long term impact on property values, while the known is that with increased interest rates comes massively increased holding / ownership costs. This is where HMOs and co-living could help.

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For a Landlord concerned about this, making their asset(s) work via an HMO / co-living model offers not only a short term plan to manage and retain a property portfolio, but a more sustainable long term investment plan.

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Lyvly creates exciting, sustainable and fresh co-living spaces for young renters in London, which offers an all inclusive, manageable way of living in London, while creating and developing friendships.  Landlords benefit from a bespoke management solution which guarantees properties are maintained to a higher standard, while also generating upwards of 60% more net income - enough to more than cover rising borrowing costs.

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There is an acute shortage of rental stock at the moment, with a recent Time Out article quoting data from Spareroom showing 7 times as many renters searching for rooms as there is supply. Lyvly are working with landlords to not only retain but grow their portfolios in a sustainable way that can benefit them and alleviate the shortage of housing.

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We're passionate believers that good quality, well managed HMOs are a mutually beneficial solution to a growing problem in an environment of increased uncertainty.

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If you are a Landlord looking for further advice on anything contained in this blog, please contact us through www.lyvly.uk/landlords and one of the team will be happy to come back to you.  

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As we are keen to continue to amplify our reach and help more landlords and tenants alike, If you know someone with property in London who could benefit from our approach, fill out this form and we’ll be in touch. If things work out with that landlord, £1,000 is yours! 

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