More renters in the United Kingdom are opting to stay in their homes for longer periods of time.
According to these figures, the United Kingdom may witness a decrease in the number of private rental properties available to let.
As a result, this is an excellent moment to explore letting out a property in the United Kingdom.
Based on current trends, a new data estimate suggests that the national lettings industry will need an astonishing 230,000 more rental properties on average if tenant demand continues to climb at its current rate.
Over the following decade, an additional 1.8 million new households are expected to be formed.
The private rental sector would therefore need to increase its supply by an average of 227,000 properties per year as a result of this demand.
What is the root cause of the present rental market conditions?
It is no secret that there is a severe lack of new homes across the country at the moment.
This has contributed to the increase in the average value of property.
As real estate gets more costly, many people are opting to rent for extended periods of time instead of buying.
In fact, over the course of a decade, the number of renters letting out a home in the United Kingdom increased from 2.8 million to 4.5 million.
In turn, this has pushed rental values up by one of the fastest rates on record.
A prominent property site reports that the average rent outside of the Capital has risen by about 10% when compared to the same time twelve months ago.
Furthermore, the rise in government regulations has contributed to the lack of rental homes that are now available.
However, it is important to note that the latest regulation has been implemented to assist in protecting tenants, who previously had little security, and is unlikely to have an impact on reputable landlords.
Ultimately, many landlords and investors have been able to create a positive return as a result of the present rental market.
So, what are the benefits of renting out a house or apartment in today's market?
- Demand for rental properties has reached an all-time high, indicating that you are more than likely to find a suitable tenant to rent your home within a short period of time.
- Your rental revenue will grow as a result of the increase in demand. In certain parts of the United Kingdom, such as Leicester, Liverpool, and Glasgow, rental yields are as high as 8 percent.
- The value of property has been steadily increasing, indicating that you will experience capital growth.
- The number of people taking 'staycations' has reached an all-time high, which has boosted the short-term lettings sector. The demand for short-term rental properties has grown the most in suburban and seaside areas, according to the latest figures.
- Void periods are at an all-time low, increasing the likelihood that you will earn a steady rental income.
If you are thinking about renting out a house this spring, our lettings professionals can assist you in navigating the local property market.
Additionally, our fully managed service will take care of all of the legal aspects of renting out a home, such as rent collection, maintenance, and finding a suitable tenant for the property.
To learn more, please contact us by clicking below.
Sources: The Guardian and Unbiased.co.uk