Tenant demand 'continuing to grow'
Published by Sarah Ashcroft
Landlords across all parts of the UK have been given a boost by the news that there continues to be a surge in demand from tenants for rented homes.
New figures from the Royal Institution of Chartered Surveyors (Rics) show there is likely to be a two per cent rise in rental demands over the next year. That can be justified by landlords, as they are aware that an increasing number of people are looking for somewhere to rent.
The report also reveals that tenant demand seems to be growing at a faster pace than the rate at which new property becomes available. This is putting increased strain on the existing supply of rental homes and could lead to more families, couples and individuals fighting it out for places to live.
Simon Rubinsohn, chief economist at Rics, said: "While the rental market remains buoyant at present, it will be interesting to see whether Help to Buy begins to encourage some tenants back to the owner occupier market as more higher loan to value mortgages become available. Even if that proves to be the case, however, it is improbable that we will see much evidence of this before 2014."
With a boost to the buying market still some way off, it seems focus will remain on renting for millions of people in the UK. This is a welcome trend for landlords, who should be in a position to increase rents and be more choosy when it comes to finding the ideal tenant.
All the while it is difficult to raise the deposit and secure a mortgage for a first home, many Britons will continue to rent accommodation. This makes it a prosperous time for buy-to-let
investors to secure homes across the UK.
It also ensures that landlords should not be in a position where their homes are left empty for a considerable spell, which is sure to cost them money and perhaps leave them facing financial worries.
Published on: April 8, 2013
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