The private rental sector is showing signs of stability after a phase of uncertainty caused by falling rents and rising vacancy.
Britain’s Excel Centre survey shows that more than one in five rents have increased over the last 12 weeks and an additional 39 percent of rents have remained stable at current levels. This spells good news for residential landlords, as rents are either rising or staying the same for a large majority of rental properties.
Thankfully, the demand for residential rental properties has seen a 50 percent jump over the past six months, and conditions look conducive for the current landlords as well as for those who are looking to buy a stake in the rental sector.
However, property values continue to remain low throughout much of the UK. A large number of properties in the UK are still selling below the original asking price. One in ten properties sold for the listed amount and 50 percent of residential property for 10 percent below the original asking price.
Nevertheless, this could be an opportunity to expand our portfolios and is a boon to first time buy-to-let business entrants.
The renewed interest among investors is a positive sign. 75 percent of estate agents noted a marked growth in demand.
