A recent report showed that numbers of rental properties coming to market had dropped by a significant margin – and that lack of available homes to rent was putting added pressure on tenants.
According to the data, close to nine in 10 of major towns and cities in the UK have experienced drops in available buy-to-let property. The big question is – what effect does this have on tenants and landlords?
Not Enough Houses to Meet Demand
The number of people renting in the UK has risen substantially in recent years. However, the buy-to-let market isn’t keeping up with this growing demand. In September, there was an average 15% drop in new rental properties coming to market, with some areas experiencing a drop of close to 40%.
The North-East appears to be the worst hit, with Hartlepool experiencing rental listing drops of 36.5%. However, London also has rental property shortages, with listings down by over 16%.
Why has this Happened?
2016 has been a year fraught with uncertainty. April’s Stamp Duty hikes made landlords more concerned about UK property investment, and the results of the EU Referendum threw the country into chaos, with many investors worrying about the economic impact of Brexit.
Although these two events occurred in the first half of the year, the uncertainty has not yet gone away. Those seeking to invest in UK property are proceeding far more cautiously, which is having a knock-on effect on tenants.
The Impact on Tenants and Landlords
The likelihood is, if things continue this way, existing landlords will push their rental rates up. They’re in a prime position to do so, as tenants need accommodation, and supply is falling far short of demand.
Those who are currently choosing not to invest in property in the UK may be missing a trick. The rental market is more buoyant than it has been in years, making it far easier for landlords to find tenants for their property. Likewise, lack of demand is causing house prices to stagnate or even drop in some areas – which means it’s more likely you’ll discover a bargain property and generate a good return on investment.
Property Investment Opportunities in 2016
Now is a good time to invest in property in the UK, particularly if you go about it in the right way. Buying a house at auction is an effective way of finding a bargain property; and generally speaking, investors save 15% of the market price when they purchase via a house auction.
Alternatively, work with a property investment agent. They’re likely to have properties on their books that aren’t available to the general public, and they’ll be priced competitively to sell. They’ll also be able to offer valuable guidance throughout the process.
The Buy2Let Shop Limited
If you’d like advice and support when investing in property in the UK, talk to The Buy2Let Shop. We’re a team of expert property investment agents in London, and we’re here to help you find a great buy-to-let property for sale, which offers an excellent return on investment.
To find out more about our services, which include assistance with buying a house at auction, and providing information through professional property investment seminars, visit The Buy2Let Shop website today.