2021 Thus Far...

Approaching the middle of February and what do we know so far about the HMO and tenanted investment sales market (from our experience).
1. Tenanted HMOs are still selling very well. If they’re priced right, they should get an acceptable offer within a week to 10 days.
The only ones that we’ve not managed to sell so far this year have been because a little bit of icing has been added to the asking prices or there’s something out of the norm that puts tenants off (low rent care lease, R2R contract, no license, bad managing agent etc).
2. Completions and conveyancing in general is getting easier - we were knocked off guard like most agencies in 2020 by the uncertainty, the delays and higher than usual fall through rate but things have stabilised and expectations are managed all round now and ‘the market’ seems to know now how to navigate sales during a pandemic.
“It’s not as bad as expected and we carry on” kind of thing.
3. Blocks of flats are extremely popular from small 2-4 units up to 30+
Propped up by the care sector but also U.K. landlords looking for freehold assets and long term rentals.
4. Tempers can flare, people are more emotional and every normal daily job is a bit harder.
We keep reminded ourselves and our team that we’re the lucky ones to be in an industry that’s still ‘open’ and that many of our clients are stressed.
Keeping positive and chirpy is hard, but the key!
5. Hong Kong is still our biggest market for tenanted HMOs - they’ve overtaken investments funds for us as the main buyer of our stock and we’re really enjoying this as it gives us more control. A few funds let us down last year by changing the goalposts on us/the sellers and, despite completing on numerous HMOs with us, they became unpredictable towards the end of 2020. We get the sense that they’re regrouping and realigning their investment strategies post-Covid so we’re looking forward to a consistent 2021 with them.
6. Quality sells


 

Location: Shrewsbury, UK

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