The year started busier than most, with a historically higher number of lets in the first three months of the year. Research from the University of Leeds, complied from data from property agents operating in the Leeds city centre market, reflected this, by revealing high levels of occupancy, steady rental returns and a limited supply pipeline for the future. All good news for landlords and with limited supply looking set to continue for the next 5 to 10 years, with only five schemes totaling around 600-700 flats having any potential of being delivered within the next 5 years, this trend looks set to continue. Director, Andrew Sainsbury commented ‘in future the public and private sectors should work closer together to identify areas of the city centre that are most likely to be attractive to occupiers and investors and co-ordinate the phasing of development with social and retail infrastructure. This particularly applies to fringe areas like East Bank, Holbeck and Beeston’.

More positive news for Landlords followed in the press with stories of the UK adopting European rental habits with anecdotes of how the British status symbol of owning your own home is no longer having the same appeal.  The summer saw another record number of lets with a 20% year-on-year increase with good quality properties in the city centre going within days (even hours in one case).  Our findings were reflected in research by Capital Economics who reported that the proportion of households in private rental accommodation increased from 10% in 2001 to 14% this year and that this is expected to increase further to 16-17% by 2015.

Later in the year, the ‘reluctant landlord’ – a phenomenon that emerged during the recession as home owners were forced to let their property rather than sell it re-emerged in the rental market. The Association of Residential Letting Agents (ARLA) reported that the number of rental properties coming on to the market because they cannot be sold, peaked during the recession, at the beginning of 2009, but their research was starting to show an increase in the reluctant landlord again.

By autumn, it was becoming increasingly common to hear from landlords looking to expand their portfolio’s. Driven by growing demand for rental property, confidence grew throughout the year. LSL Property Services, the UK’s largest agent network, reported in November that nearly a third of landlords were looking to increase the number of properties during the next 12 months.  With lack of available finance being a theme throughout the year this was the final hurdle in preventing landlord’s from expanding their property portfolio, but fortunately there was further good news ahead. After nearly three years away from the market, buy to let specialist lender, Paragon Mortgages, re-opened it’s doors to new business with an impressive £1 billion lending target for landlords.

Andrew Sainsbury of GO Lettings is very bullish about what next year holds, ‘home to more English heritage listed buildings outside of London than any other UK city, Leeds is a wonderful city ,buzzing with commercial activity. With rental demand looking set to continue and the introduction of more cutting edge technology next year (more about that later) we expect to continue bringing our landlords good news throughout 2011’.