Monthly rents will hit an average of £800 in England and Wales in two years time, whilst one in five people will be living in private rented accommodation, a 21% increase since 2010, claims the Council of Mortgage lenders conference yesterday.
David McKnight, Managing Director of Martin & Co Derby suggests that although first time buyers have had a boost from the government recently, the ability of anyone else trying to raise a deposit to buy is still severely restricted by the on going recession.
‘Whatever the outlook, the economic fundamentals remain the same. Landlords will be critical in providing homes for those no longer able to buy.
In Derby the problem is exacerbated by the high levels of movement of staff required by our strong manufacturing base. There are few homes available to buy and house prices are due to accelerate, the option of renting allows those moving into the area to choose a home close to their employers and great schools.
Buy to let advances are growing gradually making the option of becoming a landlord within the Derby area a great investment opportunity.’
For those considering making the most of this opportunity the support of an experienced local specialist lettings agent is critical.
‘A local agency knows the best areas to maximise potential rental yields, whether the property should be close to the city centre or on routes closer to major employers. It is also important to select an expert with years of property experience and the relevant safeguards in place. Martin & Co Derby are one of only four agents in Derby with membership of both ARLA and SAFEagents, the leading professional bodies which protect the landlord and their tenants.’