Prospective tenants increase demand for rental properties

 

Rental demand has increased by 13% annually, yet the number of properties up for rent has fallen by 4%, opening up the market for buy-to-let investors.

The Association of Residential Lettings Agents (ARLA) Propertymark recently released its Private Rented Sector Report for July. The report polled 191 ARLA members at the beginning of August on information regarding tenant demand, rental supply, and rent prices.

Increased demand for rental properties

In July, demand from prospective tenants in the UK’s private rental sector increased to the highest level so far in 2018 with September 2017 being the last time it’s been this high. There were 79 new prospective tenants registered per letting agent branch in July 2018, up from 71 tenants in June and 70 in July 2017.

Because of the increased demand, competition among tenants has also increased, which can push rent prices up. In June, 35% of tenants experienced rent hikes, but in July, it dropped slightly to 31%, which is the same for this time last year.

Rental supply falls

As the supply of rentals moved in the opposite direction of demand, the number of available properties for rent fell from 191 per letting branch in June to 184 in July. And year-on-year, supply is down by 4% from July 2017 when there was 192. Also, an average of four landlords per branch took their buy-to-let properties off the market, which is up from three in July 2017. However, a recent study showed that nearly a fifth of all UK landlords have declared their intentions to continue being active in the buy-to-let sector indefinitely.

With a supply and demand imbalance generating a level of demand for rental properties higher than current availability, now could be a good time to invest in buy-to-let properties, especially in areas of the UK that have become buy-to-let hotspots.

Highgrove Mews

High Net Yield Freehold Houses

  • Commutable to London (27 mins to central Paddington station)
  • Rental demand extremely strong with large industry presence in Reading
  • Freehold with 4% net yield

£284,955 - £457,000

St Petersgate – Stockport Manchester

New Launch - Stockport Manchester, apartments from £160,000

  • Discounted launch prices from £160,000
  • Excellent transport links with 3 trains per hour to London Euston and only 9 mins journey to Manchester Piccadilly
  • Experienced development team

Assured Rent Housing Association Leases

Assured Rent Housing Association Leases

  • Assured rent & no rental voids
  • Tenant damage cover & newly refurbished inline with requirements of a corporate sitting tenant
  • Free property and lettings management

From £62,000

Emerging Birmingham Commuter Town With Properties From Just £104,000

The emerging Birmingham commuter town where properties are selling in an average of just 24 days

  • A collection of 62 two bedroom apartments and 28 one bedroom apartments.
  • DE14 is one of the fastest selling postcodes in the West Midlands.
  • 23 minute train journey into Birmingham New Street Station.

Properties from £104,000

Mill, Stockport

The Northwest's emerging property hotspot

  • Discounted off-plan 2-bed prices from £162,000
  • Completion date - Q4 2021
  • Rental yields - 6% plus

Discounted off-plan 2-bed prices from £162,000

South Central – Birmingham City Centre Apartments

Highly anticipated 28 storey launch in Birmingham City Centre with an impressive roof garden and communal facilities.

  • 154 units across 28 storeys
  • Residential multi-media community room, gym, roof garden and sky cinema
  • Excellent future connectivity via the metro system to other key transport hubs and locations around the city

from £205,800

ba-

Talk to us

Speak to our UK property experts today: 

+44 (0) 333 123 0320

Open from 9am-6pm GMT

+852 9865 4446

Open from 9am-6pm HKT

Stamp Duty Calculator

.

Unlock members only investment opportunities and full development details. Join now – it’s free, quick and easy.

Login

Not a member? Sign up for free

Soaring number of accidental landlords could now begin to fall

Prospective tenants increase demand for rental properties

Example

By submitting your details via this online form you agree to be contacted via email/phone/SMS by Direct Marketplace Ltd t/a BuyAssociation in relation to property investment and property developments . We do not share your personal details with third parties.  To view our full Privacy Policy click here.