Increased demand for rental property is sparking a renewed interest in the Private Rental Sector from landlords in some parts of the UK.
Achievable rent levels on residential property have risen in the last six months, according to 60% of ARLA member agents, and have outperformed other investment classes consistently for the past two years.
The average period for which a rental property is empty in between lets is just 2.7 weeks per year, down from an average four weeks two years ago.
Ian Potter, Operations Manager at ARLA, said: “Three quarters of our members are reporting that demand for rental property is outstripping supply and, with rental returns currently at 5%, anyone thinking about investing a property to rent could be well-placed to consider their options in the coming months.”
Our research shows that prudent landlords are moving quickly to expand their portfolios, with almost a quarter (23%) reporting that they have bought properties in the last year. The most popular regions for investment are the North West, Midlands and Central London. In contrast the Rest of London saw the fewest landlords buying property.
We advise anyone considering investing in a rental property or portfolio, to first seek advice from a professional, licensed lettings agent.
Mr Potter continued: “The rental market is, rightly, coming under increasing scrutiny to ensure that consumers are not mistreated. Currently, anyone can become a letting agent. To protect your rights either as a landlord or tenant, it is critical therefore to check that there are measures – like Client Money Protection – in place with your chosen agent should things go wrong.”
If you are thinking about property as an investment contact Chris Birds on 01332 384438