United Kingdom Sotheby’s International Realty says it is seeing an emerging lettings trend of tenants wanting to “try before they buy”: renting a property and negotiating an option to buy at the end of the tenancy.
The ‘rent-to-buy’ structure offers flexibility and appeals to UHNW and HNW buyers who are in the process of building businesses for example, with more entrepreneurs in today’s market than ever, or restructuring overseas. Factors such as interest rates, potential political changes and global events have also led to this increase.
Francesca Fox, director – Lettings at United Kingdom Sotheby’s International Realty, commented: “We’ve seen a strong start to Q1, particularly in the super-prime lettings market. There’s been a noticeable increase in bidding wars among tenants eager to secure off-market rentals or properties that were previously on the sales market and are now available to rent.
“In North London, we’re seeing sellers who have completed sales now opting to rent. This allows them to “try before they buy,” explore new areas, or monitor the sales market. Traditionally, our UHNW and HNW tenants were international, relocating for work with clear exit plans. However, with more tenants considering purchases in the near future, we have opportunities to strategically position these tenants as future buyers.
“As a result of this trend, landlords of super-prime houses are now more open to creative strategies, particularly if their properties have been on the sales market for over a year. This marks a contrast to the past two years, where they were previously hesitant to commit to long-term leases.
“Clients with unique trophy homes or long-term holdings, especially those with strong ties to London through generational wealth or business interests, are increasingly open to renting. We anticipate more super-prime houses and apartments becoming available in prime Northwest London in the coming months.”
Read the orginal article: https://propertyindustryeye.com/try-before-you-buy-trend-growing-in-popularity-says-agency/
