The demand for new rental property has increase by almost 15% this year across the UK, however the number of rental properties opening on the market has dropped by almost 5%, indicazting that the market is extremely strong for BTL investors.
This is according to ARLA (The Association of Residential Lettings Agents) which recently released a July report that polled 191 members on a wide range of topics including rent prices, rental supply, and tenant demand.
Increased demand for rental properties
In July 2018 there were 79 new prospective tenants per letting agent branch, up from 71 the month before and 70 in July 2017. This is the highest its been since September of last year, and marks a large increase in demand from the Uk’s private rented sector.
This increase in demand has led to an increase in competitiveness between tenants. Causing a spike in rent prices. In June and July respectively the number of tenants who tenants experienced rental hikes were 30% and 31%.
Rental supply falls
Interestingly however the supply of rentals moved in the opposite direction, with the number of properties that are available to rent in the UK market falling by 4% from 191 per letting branch in June to 184 per letting branch in July. This is mirrored as well in year to year, where July 2017 numbers were 191 per branch. Furthermore to add strain on the market an average of 4 properties per branch removed their investment property from the market. Despite this almost a fifth of UK landlords have stated their intention to keep their property on the market.
All this points to a good time to invest in the market, especially in BTL hotspots. It also is set to continue, with more and more people looking for rental properties, and more landlords who haven’t had independent financial advice falling afoul of the new legislative changes. This leaves the market at a good entry point for those who are looking to invest, as long as they seek the proper advice from professionals.