November 8, 2011
Demand for the Private Rental Sector Continues to Rise
2011 has seen a record increase in the number of tenants looking for properties in the private rental sector. According to a report compiled by Countrywide, the demand for private rental properties rose by nearly 11% during Q3 of this year when compared with figures from the same period last year.
Not surprisingly the number of tenant viewings has also risen dramatically as the year has progressed with Q3 showing a rise of nearly 18% when compared to Q2. Today the average family home in the private rental sector is snapped up within 13 days of being advertised, and the vast majority of houses have at least 5 tenants competing for them.
Thankfully it would seem that the number of private landlords is also on the increase though and a lot of the extra demand is now being met by first-time investors. Figures in the Countrywide report show that nearly a quarter of all landlords being approved for buy to let mortgages in Q3 of this year were first time investors – a rise of nearly 5% on the start of the year.
Co-managing director of Countrywide Residential Lettings, Margaret Longden, believes the high levels of rental demand will continue into the future and that the market looks good for private landlords. When asked why she thought this was she replied that ‘many first-time buyers simply can’t afford the deposits required to purchase a property and as such they revert to private renting while they save a deposit’.
If this is the case then the demand for the private rental sector is set to stay high until the price of property drops…and this could be a long way into the future. Great news for those with buy to let property investments.
