It has been suggested this week that demand for quality rental stock will be ‘strong’ throughout 2011, with four out of 10 landlords planning to increase their rents during the coming twelve months.
This news comes at a time when 41% of landlords in the private sector expect to increase rents at some point during the next 12 months on the back of strong rental demand from tenants. A further 55% of landlords have said they will maintain their rents at their current level, whilst just 4% have said they will reduce their rental charges. With rents soaring to record levels in 2010, the supply of rental property failed to keep up with demand from eager tenants. Throughout 2011, it seems that there will be no signs of rental demand easing, as 45% of landlords expect tenant demand to continue to increase.
A recent landlord sentiment survey has indicated that landlords have become much more confident in Buy to Let (BTL) in the last three months as 48% believe now is a good time to invest in property. These latest figures show a 5% increase on the previous survey, conducted in Quarter 2 of 2010 and have provided the lettings industry with a further boost.
It has been suggested that the increase in confidence is fuelled by the fact that in the past 3 months, 50% of Landlords have seen a rise in demand for rental accommodation and 69% expect tenant demand to grow further over the next 12 months. With limited supply, landlords are less concerned that their properties will be empty which is leading to rents being pushed up. At a current average of 689 GBP per month, rents reached a record high in September after 8 consecutive months of rises.
It certainly seems that optimism is growing amongst landlords- underpinned by unprecedented levels of tenant demand, however many anticipate that this demand will increase further in the next year following the Government’s spending review. The review is expected to bring about a swell in the number of tenants, as potential social tenants look towards the private rental sector instead of facing long waiting lists for social housing.
Many industry experts have argued that an increase in the supply of rental accommodation will be necessary in order to meet this demand, and many landlords will recognise that this is a fantastic opportunity for investment. Letting agents across the country are crying out for more rental properties in order to meet the demand of prospective tenants, so if you’re looking to take advantage of the rental market- now could be the ideal time.
Manchester based estate agent combining traditional values of honesty & integrity with innovative technology & marketing tools. Edward Mellor have been trading in and around Manchester for over 25 years & are widely regarded as the leading independent estate agent & letting agent in the North West.
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