Almost 50% of landlords are reporting an increase in demand for their rental properties and they’re expecting this growth to continue over next 12 months.
- Nearly half of UK buy-to-let investors have reported an increase in rental properties, with a large proportion also predicting continued growth over the next 12 months
- But separate research has found that a large number of tenants are reporting problems with their rental property and landlords
- Student property is currently the UK’s highest yielding asset type, and also offers purchasers a hassle-free, fully managed investment
UK buy-to-let investors are experiencing a surge in demand for their properties, helping to drive annual returns.
Almost half of all landlords surveyed in new research by Paragon Mortgages have reported an increase in tenant demand, with a further 51% expecting this rate of growth to continue over the next 12 months.
The rise of Generation Y has contributed to changing attitudes towards renting and owning property in Britain. Of those landlords polled, 47% are renting to young couples and 43% to young singles. However, this research also found that 42% are letting to families with children, highlighting the preference for rental property across a wider range of demographics.
John Heron, Managing Director of Paragon Mortgages, believes that with the “continued stress on the housing stock driving prices up, tough affordability hurdles for would-be buyers and a social rented sector under pressure, a steady increase in rental demand was practically inevitable”.
Meanwhile, separate research has found that over half of tenants are reporting problems with their properties and landlords, with 13% for example suffering delays in having broken furniture replaced.
Student property is currently the UK’s best performing asset class. Over £4 billion was spent in the sector in the first half of 2015, driving strong investor returns as the growth in demand for purpose-built student accommodation mirrors that in other property markets.
Crucially, student property is commonly a fully managed investment, alleviating traditional landlord stresses for investors and boosting tenant satisfaction, which can reduce void periods and drive returns.