According to The Royal Institution of Chartered Surveyors (RICS), UK rent prices are likely to rise at a faster rate than property prices over the next five years. The news isn’t good for tenants, but may please landlords looking to boost their rental yield.
Here’s more information.
What are the Predictions?
RICS predict that rent rates are likely to rise by over 25% in the next five years. By contrast, property prices are anticipated to increase by under 20%.
There are many contributing factors influencing the price increase – but the most significant is rising tenant demand. As properties in the UK become less and less affordable to first-time buyers, more people are forced into rented accommodation, which means competition for available properties is fierce.
Reduced UK Property Investment
Another thing pushing rent prices up is lack of available rented property; a situation that looks likely to get worse. The seismic changes of last year (notably Stamp Duty and the EU referendum results) made UK property investors cautious, which resulted in fewer properties for let coming to market.
RICS revealed that, over the last few months, a number of major buy-to-let investors have sold up. Additionally, this quarter was the fourth in a row to have a lack of new property listings coming to the lettings market – and that things are likely to get worse before they improve.
Jeremy Blackburn, head of UK policy at RICS, emphasised that “we need to stop punitive measures against our bedrock small landlords.”
The Implications for Landlords?
The Mortgage Advice Bureau suggest that actually, the current situation might be beneficial for landlords (though certainly not for tenants). With demand for rented accommodation at an all-time high, it’s starting to become a landlord’s market, particularly if you purchase in the right area.
However, as with any form of investment, it’s imperative to do your homework first. Some areas look set to be more lucrative than others – if you’re not sure which, speak to a property investment agent, who will be able to offer insight into the current market.
Which Buy-to-Let Property For Sale?
When you’re looking for buy-to-let property for sale, consider the following:
The Buy2Let Shop Limited
If you’re looking for buy-to-let property for sale, talk to The Buy2Let Shop. We’re a team of specialist property investment agents, and we’re here to assist with all aspects of your UK property investment; from finding the ideal property to sealing the deal at a price that suits.
To find out more, simply visit The Buy2Let Shop website today.