As rental achievements hit an all time high in the UK, property investors with an interest in landlord insurance are experiencing better than ever prospects.
A survey carried out by lettings experts LSL Property Services found that the average cost of renting a property in the UK is now £725 a month with the prospect of prices going even higher. Residential landlords are not only bringing in record levels of rent, but 40% expect their properties to become more expensive for tenants in the next 12 months as they anticipate raising their rents by almost 5%. Incredibly only 1% of the landlords questioned expected to reduce the amount of rent they charge. The confidence of property investors at the moment is summed up by the fact that 2 out of 3 landlords said they expected demand for their properties to increase over the next year.
And who can blame them? First time buyers with small deposits (10% and under) are finding mortgages in ever decreasing supply and with ever increasing interest rates, leaving professional landlords to snap up good properties at knock down prices. David Newmes, Director of LSL Property Services, doesn’t hold out much hope for first time buyers or tenants, saying “As long as lending to first-time buyers remains in the doldrums, and new house building remains subdued, we won’t see demand for rental accommodation tail off. In these conditions, while affordability may increasingly come into play as landlords set rents, they are far more likely to continue to rise than tumble in the coming 12 months.”
There seems little evidence that Government pressure on lenders to loosen the purse strings is having any effect on the market and until it does there will be no stopping landlords determined to make the best of their opportunities.