A leading residential lettings agency reports rental demand, throughout the UK, continues to accelerate with properties taken within 2-weeks of listing and as many as 5 applicants competing for every vacancy.

Tenant demand grew by almost 11% in Q3 year-on-year, following a Q2 growth of almost 12%. Viewings also increased by nearly 18% compared to the previous quarter producing an annual increase of over 8%.

Demand from investors remains strong too, with an increase in the first-time investor category. In Q3, over 23% of all landlords were investing for the first time, 5% more than at the start of the year.

 

It is expected that demand will continue to outstrip supply, which is a healthy position for the investor/landlord. Demand over supply inveriably means higher rents however, the prudent landlord is not a greedy landlord and will tailor their lettings proposition to middle-market to encourage less vacant periods and more responsible tenants. 

Rather than reducing the rent however, why not take a leaf out of the TV Ads and offer 7-months letting for the price of 6. This way you do not compromise your rent book monthly income record that is the inherent value of your BTL business.

Government incentive schemes and lender assistance for the first-time buyers have done little to ease raising a deposit and to many have resigned themselves to renting whilst house prices stabilize. 

But buying Below Market Value gives an immediate property equity of almost 50% with mortgage payments for a 2/3-bed house often less than a rent for the same property.

* assumes 25%BMV purchase.

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