Prime commuter rental markets proved more resilient than those in neighbouring London last year, with only a small decrease in values of 0.9 per cent, compared with a 5.1 per cent fall in London. Savills research shows that commuter locations will continue to outperform London, with rents forecast to increase by 6 per cent over the next five years, compared with 4 per cent in the capital.

But in a year that is likely to see more accidental landlords coming to the market, weaker demand from corporate tenants and a shortage in supply of flats and smaller houses, what can landlords in the commuter zone do to ensure they stay ahead in 2017?

Be flexible

Although rental values are forecast to rise over the short term, growth will be more pronounced for properties with one or two bedrooms. Such properties have increased by 14.6 per cent over the last five years, compared with a 3.7 per cent increase for those with more than five bedrooms.

Fewer corporate tenants

Since last year’s referendum we have seen a decrease in corporate relocation to the commuter zone. Such tenants tend to offer close to a property’s asking price, so with fewer of them out there, landlords may need to be more open to offers.

Location, location, location

Tenants, and families in particular, are becoming less location specific and instead focusing on finding their dream house. These property-minded tenants are prepared to go further to find their ideal home and won’t necessarily be swayed by a perfect location.

Competition from professional investors

Recent changes in taxation will prompt less movement on the buy-to-let market but expect increased competition on lower-value, higher-yielding investments if you’re looking to expand your portfolio this year.

Accidental landlords

As more accidental landlords join the market there will be increased choice for tenants, so it’s important to stay competitive. Think of ways to make your property stand out: tenants typically prefer managed properties, for example, while added extras, such as including the internet in the rent, can be an appealing incentive.

Property health check

Now is the ideal time to give your property a health check to ensure it stands the best chance of getting rented quickly. Remember that tenants will have different preferences on style so opt for a clean and minimalist design. For the long term, think about installing practical and reputable fixtures so that replacement parts and engineers will be readily available should repairs be needed.

Further information

Contact Savills Lettings