Rental properties are in incredibly high demand up and down the country, and it’s also being reported that average tenancy lengths are increasing, with tenants remaining in a property for more than 4 years, over double the average tenancy length recorded in 2017.
Whilst strong demand is great news for landlords and potential investors, longer average tenancies are also a positive factor. Less changing of tenants, a reduction in the potential for void periods, potentially lower administration costs when renewing rather than letting to a new party – all positive factors when considering the full scope of a potential investment.
If you’re interested to learn more about property market trends and where we would recommend investors focus their attention over the coming months to make the most of the current market, please do get in touch.
Here’s what we’ve seen in the news this week:
Private Landlords Report ‘record’ Demand For Properties: Landlords have reported that demand for rental housing is at an all-time high. This follows the NRLA’s regular quarterly poll of private landlords, which revealed that 57 per cent confirmed that demand for homes to rent had increased in the third quarter of 2021 – up from 39 per cent in the second quarter of the year. Read more.
Nationwide: UK house prices continue to surge in November: House prices in the UK have returned to double-digit growth following a slowdown in the market after the stamp duty holiday came to an end. Annual house price growth hit 10% in November, according to the Nationwide Building Society. That was an increase from the 9.9% growth seen the month before. Read more from the BBC.
Soaring numbers of students see boom in demand for rental property: Rising student numbers in Leeds have seen students already reserving homes for next summer on the back of virtual viewings with many preparing to pay record rents to secure the best homes. This follows The University of Leeds saying many courses were oversubscribed this year and even offering some students wanting to study law or business, £10,000 cash and free accommodation for the 2022/23 academic year if they deferred their courses.
It’s estimated that the student population in Leeds has now swelled to more than 70,000. Read more.
Average tenancy lengths are on the rise: Rising average tenancy lengths make inventories and regular inspections much more important for letting agents and landlords, according to No Letting Go. The latest English Housing Survey (EHS), the largest and most representative dataset for the private rented sector, found that private renters had lived in their home for 4.3 years on average – still considerably shorter than for social renters or owner-occupiers, but most definitely on the up. Read more.
Buy-to-let investment – is it worth it? The demise of the buy-to-let market has been much predicted over recent years. Major tax changes, a 3% stamp duty surcharge, and increasing regulation have undoubtedly deterred some from entering the market. Existing landlords have questioned the viability of their portfolio, and some have made the decision to sell up while house prices are on the increase. Indeed, a recent survey by Nottingham Building Society found that a fifth (20%) of landlords are considering selling all, or part, of their portfolios. Yet this means that 80% are still keen to retain their assets, suggesting that predictions of a mass exodus of landlords is highly unlikely to happen any time soon. So what are the continuing benefits of investing in buy-to-let property? Read more.
Coronavirus has had less of an impact on UK property than you might think: The UK property market looked to have been turned upside-down as people abandoned city flats to work from more spacious homes in the country, while offices and shops remained shut. But as it turned out, the change was less dramatic. Read more.
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