Rental demand is 20% higher than last year

There was very little else for people to do apart from consider their living circumstances and, whether that involved downsizing, upsizing or home improvements, there was almost record activity across the board in that respect.

For example, as reported in The Guardian, ‘Kingfisher, which owns the UK DIY chains B&Q and Screwfix, said it expected half-year profits to be ahead of the same period a year ago as sales at its stores around the world surged by 14% in May, 25% in June and by more than a fifth in the first three weeks of July.’

Rightmove experienced its busiest day on record on 27th May last year, when traffic increased a massive 18% year-on-year and their own data showed that 28% of people who’d had no plans to move before lockdown had changed their minds.

House prices, too, increased by record levels in 2020 rising by a total of 6% across the country, representing record increases and a new record for the average price of a UK property.

20% increase

Property portal Zoopla are now reporting that rental demand year-on-year has grown a colossal 20%, due to a number of factors in the market.

One reason given by the company when compiling the data was that First Time Buyers are finding it increasingly difficult to source a mortgage, with many banks changing the terms in which they will accept applications.

Many have decreased their Loan To Value (LTV) rate, which means that buyers would require a larger deposit in order to be accepted, but not just that, many are also busier than at any other time in recent years, meaning they’re struggling to keep up with demand.

Further to this, the disparity between supply and demand is also driving up prices, rents and demand. Property investment has been on the increase as well, with yields, rents and prices all increasing by record numbers.

Investing in 2021

For those considering it, this year could be an excellent time to get more involved in the market with demand so high.

Whilst property prices are unlikely to rise by quite as much as they did last year, even a 3-5% increase represents incredible value if you were to invest now with rental demand increasing as much as it is.

Shrinking supply, increasing demand and rent increases mean that yields are likely to soar further throughout the year meaning that the income that landlords will receive on their investments will be even more impressive.

Add to this that many buy to let mortgage investors are looking to increase their market this year, along with historically low interest rates this really does make it fertile ground for property investors to spread their wings this year and increase their portfolio.