UK landlords ‘picking up the slack'

Published 25th Jun 2008

The UK's rental market is booming, which is great news for BTL investors, argues one company...

According to new data from estate agent Your Move, demand for rented accommodation soared in May, with lease commencements up by 41% year-on-year. Tenant demand also increased month on month - the number of leases commencing in May 2008 rose 14% from April 2008.

David Newnes, Managing Director of Your Move, explained: "Mortgage finance is hard to come by these days - the rental market is definitely picking up the slack. And we've seen a considerable number of would-be buyers put house purchase on hold because of the squeeze on their finances. They're turning to the rented sector while money is tight."

May's increase in tenant demand is part of a wider trend. In April 2008 the number of leases commencing was 56% higher than the year before. The number of leases commencing in 2008 in total is up 34% on the same period in 2007. Month on month, there has also been a steady increase in tenant demand from March this year.

BTL ‘will grow this year'

David Newnes continued, "There has been a significant rise in the number of people looking to in the past few months. Banks and building societies are tightening their loan criteria and raising their fixed rates week in, week out - people who would have fallen into the first time buyer bracket a year ago are now renting.

"Buy-to-let will grow this year. Opportunities to invest are ripe for professional landlords able to secure financing. With rising tenant demand comes rising rents - buy-to-let yields will consequently improve.

"House prices are under pressure at the moment, and there's scope for buy-to-let investors with collateral to get good deals to expand their portfolios."

Source: ' TMC '

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