July 20, 2010
With the nation’s housing market still unpredictable, demand for rental accommodation has reached record levels in the past year, market research has revealed.
In the later months of 2009, estate agents reported a swell in rental enquiries, by as much as 16% in some cases, the highest level recorded since 2003.
June witnessed the biggest spike in demand with more than 18,000 new tenants registering for rented accommodation with certain agents, the highest number recorded during a single month and 22% more than in May.
Findings also revealed that the government’s increase in Capital Gains Tax (CGT) does not appear to have deterred new first time landlords coming to the market, with numbers increasing by 6% since the last quarter.
A reluctance to seek out and buy a property due to continuing mortgage finance issues means there is now an average of 5.5 tenants competing for every property, up from 4.9 tenants per property during the first quarter of the year, in some areas of Britain.
But, with demand beginning to outweigh supply, the price of rent has risen slightly during this time, but not substantially.
To answer the demand, homeowners currently living with spare rooms or dormant properties are being encouraged to consider the benefits of renting their homes to hungry tenants and ride the rental wave while it lasts.
If you need help renting your property to tenants, or are a tenant yourself and think your landlord’s service is falling below government standards, property and conveyancing solicitors can help.
By discussing your options and issues with experts, you can ensure a safe and profitable passage through Britain’s record rental boom.
