The underlying strength of the rental market has been emphasised once more by new statistics that show rental prices are continuing to rise, despite more property stock becoming available to tenants.
Rightmove’s most recent Rental Price Tracker shows asking rents outside London in the second quarter of 2017 were 2.8 per cent up on the previous quarter. While some may expect a rise in rents to be at least partially a result of low supply, the opposite was in fact true with property availability up by seven per cent in comparison with Q2 in 2016.
Allison Thompson, managing director at property specialist Leaders, says: “Some experts believed the supply of rental properties would fall this year due to economic and political concerns, but this has certainly proved not to be the case.
“In fact, supply is growing in all regions across the country and high tenant demand for all types of properties means rental prices are also on the up, providing landlords with a golden opportunity to benefit from more people looking for rented accommodation and a booming market that allows them to enjoy a significant return on investment.
“This trend is also good news for tenants who are faced with more choice on the rental market and a greater chance of finding their perfect home.
“We expect rents to continue to rise through the remainder of 2017 and into 2018, making buying to let a lucrative investment that will deliver low voids and high yields.”
Rightmove’s research identified the most in-demand areas of all, with Oldham, Stirling, Folkestone, Stockport and Welwyn Garden City attracting the highest tenant demand of all outside London.
It also found the greatest annual increase in rents has come in the north-west, where prices are three per cent higher than in 2016. This was followed by the East Midlands, which has witnessed a 2.3 per cent hike.
For more information or advice on letting a property contact your local Leaders branch.