The Year Ahead – 2023 | MIH Property Management

020 3637 7968

info@mihproperty.co.uk

First of all, we’d like to wish you a Happy New Year for 2023

We hope you enjoyed the festive season and are raring to go for the new year armed with some resolutions and perhaps a business or property plan of some description.

FORWARD THINKING

We firmly believe in forward planning, in fact statistics indicate that if you write down goals, you’re 42% more likely to achieve them!

So, we’re looking at the year ahead armed and prepared, and have already mapped out our goals and aspirations for 2023. This includes considering how we can deliver an even better service, and how we can build MIH to make our unique approach available to more commercial, residential and block landlords. Plus, how we can better support our tenants by providing quality and timely maintenance work and responsive management.

Happy tenants = happy landlords.

We’ve also scanned the property horizon to anticipate what’s in store for the coming year.

THE LONDON RENTAL PROPERTY AGENDA 2023

The last few years have been unprecedented and unpredictable, thanks to the pandemic and the impact of the war in Ukraine, escalating fuel costs and cost of living crisis. This has resulted in some turbulence and reactivity within the London rental market, yet statistics give good reason to be optimistic in 2023.

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During the pandemic, rental yields in London dropped below 2% and yet, as transactions have risen while supply has remained low, yields have recovered to 4.17% based on research using data from the ONS.

OPS Global

This is good news for Landlords – the UK capital remains a highly desirable business centre and therefore property demand still outstrips supply. In fact, reports show that in the past year, London rental prices have soared 17% or £273 per month. There are opportunities for those with cash to hand wishing to invest, but undoubtedly it is more challenging for those with existing mortgages who are coping with significant rises.

However, it’s not such good news for tenants for whom rent now accounts for 35% of the average income of a single earner. In addition, rising mortgage rates have made home ownership prohibitive for many first-time buyers, with rental being the only realistic option.

BUILDING COMMUNITY

Property investment is still an equitable business and there is a great need for new affordable property development in London.

Landlords clearly have the upper hand, but there is an onus now on ensuring that rental properties are well-maintained and fit for purpose. In the last year we’ve seen the outcome of poorly maintained, damp homes and the very real risk to life. Under the Rental Reform law updated in 2022, landlords will need to make sure their property is ‘fit for human habitation’.

At the same time, there is a stronger demand by prospective tenants for leisure spaces and amenities, to support quality of life and to foster community, something brought to the forefront during the pandemic.

THE WAY FORWARD

The relationship between Landlord and tenant is symbiotic, success lies in synergy and ensuring that there is balance. Landlords can continue to benefit in the current economic climate and high-demand marketplace, but at the same time, it’s important that their tenants have decent a property to live in and therefore have appropriate quality of life.

HOW MIH CAN HELP

MIH is the knowledgeable and pragmatic intermediary between Landlord and tenant. Combining smart property management, strategic maintenance and aiming for harmony in the various relationships, we look to support the vital balance between property owner and contented renter. Through this we can promote your interests and protect your assets – always working for the best possible return on investment.