There appears to be no let up in the demand for rental properties across the UK and in a recent landlords survey, more than one third of landlords said they were planning to increase their rents in the New Year. Unsurprisingly, only 1% of landlords polled said they had plans to reduce their rents in the New Year.
Is demand for rental property likely to continue rising?
Well I don’t have a crystal ball, but the signs are good that rental demand looks set to increase over the next twelve months. Demand for rental property in some areas, (particularly London and the south east), is far outstripping available homes and experts predict that it is highly unlikely that this trend is going to suddenly change.
Why is demand so high?
First time buyers are still finding it almost impossible to get a foothold on the property ladder. Banks and building societies have not relaxed their lending criteria, so anyone wanting to purchase a property needs a substantial deposit in hand before applying for a mortgage. Unfortunately, with the cost of living so high, most people have nothing left at the end of an average month, so saving for a deposit is impossible.
However, there are many good deals for prospective investors hoping to purchase a buy to let property or add further properties to their existing portfolio, and since interest rates on savings accounts are so dire, investing in buy to let property is considered a good move for those who want to make their savings work harder.
