Buy to let market moves in circles

Newcastle lettings agent Walton Robinson is launching a new “full circle” service for budding property investors to grab the opportunity to gain good returns as renting is becoming popular again.

Having recently celebrated its tenth anniversary, Newcastle Haymarket based Walton Robinson has seen rapid growth from an initial portfolio of 90 properties to 295, and is ahead of schedule to hit its £850,000 turnover target by the end of 2012.

The agency is now going for further market share with a new service that includes everything from advising on entering the buy to let market, connecting the client with the relevant mortgage and tax experts, handling the full property search on behalf of the client, managing the purchase negotiations, refurbishment, letting the property and then managing the tenancy day to day.

Walton Robinson has geared up its service offering just as the property market is starting to shift. Reports have shown the buy to let market is improving as landlords bought 20% more properties in 2011, which has been a slow but steady progress since the rock bottom slump in 2009 (ThisisMoney.co.uk, February 2012).

Managing director Mark Walton believes the rise in demand for rental accommodation has helped the company hit its annual targets to date and put them on schedule to manage over 350 properties by the end of 2012.

He said: “The number of people renting has increased, which means there is an opportunity for rentable properties to grow.

“We have seen confidence in the market start to return and investors are seeing now as an opportune time to start buying again. This is in part due to a shift in investors’ reasons for buying – previously investors were buying property to sell immediately for a capital gain and therefore many were caught out when values dropped. Investing for a rental return as well as a capital gain has become far more popular as there are two types of return and if one is not doing well the other is.

“Our full circle service provides the necessary attention to every aspect of property investment by enabling investors to benefit from our considerable experience in providing highly sought after rental accommodation that is well located and therefore likely to realise capital appreciation over time.

“We source suitable property through our local Landlord and Estate agent network, view properties, make astute offers, negotiate to acceptance and instruct solicitors. We then liaise with all parties throughout the legal process.

“Any refurbishment is managed by our trusted quality contractors that cover anything from a straight forward paint job and some new furniture through to a total re-structure of the building.

“Once ready we find and vet suitable tenants and look after them on behalf of the landlord, managing their enquiries and handling rent payments.

“More emphasis needs to be put on rental yields as opposed to capital gain returns, as this will encourage confidence in investors. It’s a slow progression but the market is starting to gather more pace. Having made strategic investment in our brand for a new service offering we are fully equipped to grow our business and our clients’ portfolios as the market develops.”