Premium lets: An untapped potential

The UK letting market continues to boom. Recent data shows that there were 4.6m privately let households in 2023, with the average monthly asking rent (excluding Greater London) being just short of £1,300, according to Rightmove research.

Closer to WS Residential’s geographical footprint, the average asking rent in Yorkshire and Humberside is £1,010, making it the second most affordable location to live in throughout the country.

However, although a large proportion of letting prices are below the industry average, as an estate agency we are seeing demand for let properties which in fact exceed the average asking. This lesser-known category is called ‘premium lets’ and is steadily growing its popularity and presence within the regional lettings market.

What are premium lets?

Premium lets refer to properties that exceed the standard expectations of rented homes in terms of size, price and luxury amenities.

As a means of classification, you might consider anything with a rent upwards of £1,500 per calendar month or a market value exceeding £500,000 as a premium let. Premium let properties may benefit from luxury features such as hot tubs, advanced security systems, smart technology and underfloor heating systems.

Owners of these types of homes often overlook the possibility of letting their property as they assume there is little value in trying to do so.

This presents unprecedented opportunities for homeowners of properties in this category - and also for geographically dynamic, high net-worth individuals looking for contemporary living.

Why let a ‘premium’ property?

Investor landlords looking for high returns on their portfolio of properties may not be interested in this category of lets. However, there is a growing level of demand for these premium lets from prospective tenants. This presents a profitable opportunity for individuals who own these luxury properties not as part of an investment portfolio, who may be unaware that there is indeed a strong consumer market for renting their property type.

If these homeowners are looking to pack their things and get on the move at short notice without wanting to lose their place on the property ladder, then premium letting allows them to do this. Their property is put to good use as the homeowner can gain a passive income in the form of incoming rent, which can be used to support their mortgage repayments and general living expenses.

They are then free to travel, move, buy other properties, or see out any other life aspirations - without being tied down by their home.

Letting concerns

The premium lets market is considerably smaller than the market for cheaper and smaller let properties. The housing market is clouded in uncertainty, fuelled by external events such as the upcoming general election potentially causing economic instability, which may leave prospective landlords anxious to enter the market.

Rental legislation also tends to favour the tenant, creating a complicated and highly regulated landscape for landlords to operate in.

Increasingly, landlords are beginning to settle only for the ‘right’ tenant, whom they can trust, rather than anyone who offers to pay the rent. Having to deal with large, corporate and machine-like estate agents who do not take this into consideration is therefore not appealing to first-time landlords.

The good news

At WS Residential, we understand the nature of the premium lets market. Our expert team has a wealth of experience in dealing with both homeowners and tenants on rental properties over £1,500pcm. We recognise the importance of identifying the right tenant for your home, and also ensuring that the letting process is as smooth and stress-free as possible for you.

Finding the right tenant

We understand that letting your home entails just that: your home. Because of this, homeowners want to be sure that their property is let to someone who they can trust to take of their space and to adhere to the contractual obligations of the agreement. We take pride in our commitment to find the right tenant for you, whoever that may be.

Increasingly, we are seeing geographically unbound, high net-worth individuals seeking premium lets. When luxury is sought and cash is not an issue for tenants, the premium lets market provides the perfect opportunity for contemporary, medium-term commitment accommodation. Professional athletes, doctors and actors are among the occupations that tend to lean into this market.

Locations such as Calderdale are highly desirable for those looking to live the rural lifestyle while retaining convenient transport links to populated, economically advanced areas. We attract and deal with these individuals, taking time to get to know our clients in order to create meaningful relationships between landlord and tenant.

Navigating the market

The stability of the housing market is never guaranteed and there is therefore no ‘perfect’ time to let your home. Understanding the market and carrying out your let accordingly is essential, however – and that’s where we come in: we handle the tricky bits so you don’t have to.

As experts in the field, we leverage our industry knowledge to best serve our clients in a dynamic market.

The future

The premium lets market is only going to grow. As societal norms drift away from the traditional pressures of buying a house and settling down for life, dynamic living situations are favoured by the new generations, and premium lets shall thrive.

This presents unprecedented opportunities for owners of properties in this bracket to let out their home and make good use of the property, all while having the freedom to follow their own desires beyond homeownership.

If you’re looking for a premium letting, or a homeowner looking to let their property, get in touch with our residential manager, Adam Powell, today. Call his mobile on 07917 014131.

---

Back To News