Find out what’s happening in the property investment arena both in the UK and internationally
Looking to rent a property? Best prepare for a fight!
May 5, 2015Article by Charlotte Ashton
Demand for private rental accommodation in the UK has soared over recent years and now the latest data from letting agency Sequence has revealed that for every rental property, five tenants are chasing it due to increasing demand and falling supply.
A landlord’s market
The news is excellent for landlords, if not for those looking to rent a new home. It is the latest data to confirm the strength of the UK’s buy-to-let sector as an investment option, with increasing numbers of property investors seeing this market as the way to achieve a healthy, stable portfolio with comfortable yields.
Ray Withers, Chief Executive of specialist property investment company Property Frontiers, comments,
“We’re seeing a fascinating situation unfolding within the UK, where for a number of years demand for rental property has been increasing, with growing numbers of people turning to renting when they find themselves unable to get onto the property ladder. Constrictions on supply, due to the UK not having built enough homes over the past decade and more, mean that at the same time that demand is going up, supply is dwindling. It’s creating a fantastic opportunity for buy-to-let landlords looking to invest in new build or redeveloped buildings across the country.”
One such site is Custom Quay in the Salford Quays area of Manchester. The conversion of an iconic waterfront commercial building will see 60 one and two bedroom apartments and mews homes created for those looking for a waterfront home but unable to afford to purchase one. Prices start at £127,000 for an apartment and at £177,000 for a duplex. The development now offers up to 8.4% yields with full management option available, following two favourable rental appraisals.
The rental appraisals at Custom Quay are in line with a national trend that has seen rents rise by 15.2% since the time of the last general election, according to figures from Your Move and Reeds Rains. At the same time as rents are leaping upward, data from Shelter has shown that over 80% of properties for sale in the UK are too expensive for families looking to purchase their first home.
It is perhaps a bleak outlook for those who are desperate to get on the property ladder, but for individuals looking to put their pounds into property for profit, the situation is one that presents substantial opportunities. Investors from across the globe are lining up to be part of the UK’s buy-to-let sector, bringing money into the country thanks to this growing section of the property market.
For more information about leading buy-to-let investment opportunities across the UK, contact Property Frontiers or call +44 1865 202 700.