One of the biggest news stories over the last year (apart from a certain pandemic, of course) is the continuous success of the UK property market and the large volume of buyers vying for their new homes.
However, the rental market was often overlooked in the conversation, but in reality, there is a lot to be positive about. Here are a few reasons why it’s a great time to be involved in UK buy to let.
The value of the UK PRS continues to grow
Recent data from Shawbrook Bank has revealed that the value of the private rented sector in England, Wales and Scotland has increased to an eye-watering £1.4trn in the last 12 months. In their data, Shawbrook found that the value of average buy-to-let properties has increased by 5.6% in the year to December 2020, and around 42% of landlords surveyed had seen a growth in demand from tenants, demonstrating that there is a healthy appetite for rental properties throughout the country. Shawbrook’s research also revealed the regions with the best yields, with the North West (5.5%) and Yorkshire (5.4%) coming out on top.
Average UK rents have surpassed £1,000pcm for two months in a row
In July, data from HomeLet revealed that the average UK rent stood at £1,007 per calendar month (pcm) in June – the highest figure that has ever been recorded. In case anyone thought that this might have been a one-off situation, HomeLet then recorded an average rent of £1,029 across the UK, which is a 2.2% increase from the month prior, and the second month in a row that it had surpassed £1,000 pcm. This clearly demonstrates a strong demand for UK rental properties and a chronic shortage of homes in the private rented sector, which was present long before the pandemic. It also demonstrated the bold return of the London rental market that saw an increase of 2.1% in July, after a year of decline.
Tenant demand is officially the highest on record
We have touched upon the high demand from tenants throughout this article, but there’s a recent study that really hammers this home. The data, which was published by ARLA Propertymark, revealed that the average number of new prospective tenants registering per branch had increased from 88 in June to 102 in July, which is the highest figure ever recorded in the report. The region that saw the highest demand from tenants was the North West, which had an average of 166 new tenants registered per branch. This was followed by the South West (160 new tenants per branch), and the West Midlands (159 new tenants per branch). In terms of stock, Scotland had the highest number of properties in ARLA’s study, where agents had an average of 259 properties registered per branch. On the other end of the scale, London had the biggest shortage of stock, with only 134 properties managed per branch.
Clearly, there is a lot to be positive about in the UK private rental market at the moment, with a lot of activity and record-breaking data. It’s also a great time to expand your portfolio and sell your properties, so if you’re looking to do either, don’t hesitate to get in touch and one of our expert consultants will be than happy to give you investment advice that is tailored to you.
