Latest figures show that numbers of rental properties available on the market has dropped to its lowest level in 12 months. According to the Association of Residential Letting Agents (ARLA), the average number of rental properties listed with letting in the agents in the UK is now just 172 – 10 less than the previous month.
However, the number of tenants seeking homes to rent has increased – showing that demand for rented accommodation is outstripping supply.
There are a number of factors contributing to the current situation. Not enough new properties are being built, which is putting pressure on existing available accommodation. Rising property prices mean that fewer people are investing in property in the UK – which in turn, means greater demand for rented homes.
At present, a fifth of people renting in the UK do not anticipate ever being able to afford to invest in property. Unless more affordable housing comes on the market, this number is only likely to increase.
The Effect on Landlords
The situation is bleak for those seeking rented accommodation. However, it’s good news for investors looking for buy-to-let property for sale. Increased demand means not only a steady supply of tenants, but also the option of increasing rent charges and boosting annual returns.
ARLA reported that 30% of UK landlords had increased rent in January to reflect the growing demand, thus enjoying a healthier profit. However, for tenants, the situation is worrying. In some locations, as many as 10 people are competing for one rented property – and supply simply cannot meet the rising demand.
Should You Look for Buy-to-Let Property for Sale?
Certainly, the rental market is thriving at the moment, and most UK landlords are experiencing unprecedented demand for their properties. There’s good potential to maximise annual returns, and rising property prices means that it’s likely your house will achieve good capital growth too.
However, it’s important to be aware that landlords now face increased stamp duty charges (as of April 2016) which can add thousands to the initial cost of your property. So, it’s important to assess whether your rental yield will offer a good enough return on your initial financial outlay.
Understanding Property Investment in the UK
In order to ensure you make good money from renting property, it’s important to have a solid grasp of the market. Take the time to do your research, and talk to other investors who have already built a property portfolio.
It’s also a good idea to attend property seminars in the UK – as these often provide valuable insight into the process of finding suitable buy-to-let property for sale. Alternatively, talk to a specialist property investment agent in London, who can answer your questions and help you to locate property investment opportunities not currently available on the general market.
The Buy2Let Shop Limited
If you’d like to find out more information about investment properties for sale in the UK, or want to book your place on a property seminar in London, talk to The Buy2Let Shop team today. We’re property investment agents in London, and we’ll assist you with finding great investment opportunities, plus provide help with buying a house at auction, if required.
To find out more, visit our site today.