UK Buy To Let Sector Still Growing
UK Buy To Let Continues To Expand
The Council of Mortgage Lenders’ (CML), has noted that UK Landlords, Property Management Companies, Lettings and Estate Agents are currently seeing strong rental returns within the UK PRS, and this income improvement is likely to continue for the foreseeable future as the already high demand for private sector rented property continues to increase.
The reasons behind the strength of the private rented sector include a shortage of social housing and the difficulty of would-be first-time buyers to be able to afford a home.
The Council of Mortgage Lenders noted that the UK Buy To Let sector offers, people who can’t buy residential property, multiple home options and some degree of quality of choice, whilst they save up to get their own foot on the property ladder.
The CML reported that the UK Private Rented Sector has been expanding rapidly over the last two quarters, with inward net migration one driver behind its growth in recent years, while some householders have decided to move into a leased property in order to rent theirs out to make extra money. A smart financial move, so long as they have remembered to get the correct permissions and suitable landlord insurance.
Many people are also choosing to rent rather than becoming an owner-occupier because it gives them more freedom and flexibility.
The fundamentals of growth in the number of UK households, combined with constraints on access to the owner-occupied and social housing sectors in the foreseeable future, suggest that over the next few years, demand for privately rented accommodation will remain strong and continue to grow.
The demand for UK Buy To Let properties is so strong at the moment that it is outstripping supply at an astonishing rate.
UK landlords could think about renovating unoccupied / empty properties or taking on repossessed homes in order to extend their property portfolio’s, to take advantage of the record numbers of people looking for rented accommodation.
Such prospective tenant demand means that UK landlords have the enviable position of being able to choose the best prospects for their properties, by means of thorough tenant referencing. Landlords are able to determine the financial backgrounds of all applicants prior to granting them an AST.
