Buy-To-Let Property Trend: Tenant Demand and Rental Yields on the Rise
ARLA PropertyMark, the UK’s foremost professional body for letting agents, are reporting an increase in demand from prospective tenants, with the number of new tenants registering at 73 on average per branch, compared to 70 in June. Positive news for landlords and an encouraging boost for the industry following the introduction of the Tenant Fee Ban back in June.
With the new Tenant Fee Ban making it easier for prospective tenants to make the move, due to lower deposits required and smaller moving fees to pay, plus an improvement in tenant’s finances with the rise of inflation, it means there has been a fall in the number of properties available as renting has become more affordable, which has further increased the competition and pushed demand and costs up.
Jo Stockton, Lettings Manager for Michael Jones Worthing, said:
The lettings market is a very buoyant market and with the changes in recent legalisation it’s had an impact on the increase of potential tenants looking for a new property.
With the introduction of the tenant fee ban and the option of a Nil deposit it means that initial ‘move in’ fees aren’t as high as they have been initially, meaning the landlords have a greater target audience.
Equally, it has had an impact on the rental figures increasing as some of the landlords are wanting to cover additional costs the fee ban has incurred.
In other positive news for landlords and investors, particularly those adding to their portfolios, according to the ‘Buy to Let Britain’ report from Kent Reliance, a banking services provider, rental yields in the private rental sector have also increased, with the average yield now 4.5%, the highest level for two years.
With the uncertainty of Brexit having a knock on effect on landlords’ confidence, this latest property trend is encouraging news for landlords and provides the perfect opportunity for buy-to-let landlords to start expanding their portfolio.
If you’re thinking about investing in your first property, or wish to grow your existing portfolio, we’re here to offer advice and answer all property or management-related questions. We will help guide you through the process, start to finish, ensuring peace of mind.
Visit us at your local Michael Jones branch or call 01903 213 111 for Worthing or 01903 756 688 for Lancing and their surrounding areas and speak with one of our buy-to-let experts today.
Content accurate at time of publishing.