According to the Bank of England (BoE), UK homeowners borrowed more on their mortgages than they repaid in March – a record £11.8bn - with gross mortgage borrowing reaching £35.6bn. New mortgage approvals reached 83,000, which is 10,000 more than in February 2020, just before the Covid restrictions were put in place. After so many months of people syphoning spare cash… Read More
Across England, the demand for rental properties has reached record levels as renting has now become cheaper than buying for many. This, despite stamp duty incentives and demand for rental properties exceeding supply in many areas.
Data from HomeLet Rental Index shows that between April and May there was only a 0.1% increase in the average cost of rent, which continued the trend seen throughout 2021.
Void periods drop
The high level of demand for rental properties is also reflected in falling void periods. According to results from the Goodlord Rental Index for May, voids are tumbling and rents continue to be more resilient than previously predicted. England saw the average void period reduce by 15% with all but one of the eight regions across England seeing a drop.
Private rental market is worth £1.3trn
The positive news for landlords doesn’t end there. Latest research conducted by Sequre Property Investment, the Buy-to-Let specialist, has calculated that there is around £1.3trn worth of private rental housing stock.
The South East accounts for 14% of this private rental stock, around 670,000 properties, and comes in after London as the second most valuable rental market at £229bn. This highlights the importance of the private rental market. Without it, the government would be left with a shortfall of nearly five million homes.
Rental income up 39% since 2009
For those still cautious about the current market uncertainty, Build to Rent specialists, Ascend Properties, has found that, in the South East alone, the rental market value increased 39% since the 2008-09 recession, the second largest increase following London.
Ged McPartlin, Managing Director of Ascend Properties, commented: “It’s fair to say that pandemic uncertainty may have caused hesitation for some when looking to invest within the rental market. However, while Covid uncertainty has created a tricky landscape in some respects, we remain a world away from the financial crisis of 2008.
"It also remains clear that, much like the wider housing market, any periods of instability are relatively short-lived and we’ve seen strong and consistent growth across the board as a result.”
Optimal conditions to let your property
Murray Kerr, Residential Lettings Manager at Oakley, comments: “As we ease our way out of lockdown, the demand for rental properties in Brighton & Hove is extremely high, with the number of potential tenants outstripping available properties by quite a way. I would expect this trend to continue until the end of September when all the students and contractual workers should have found their new homes and started their new terms and contracts, then the market should settle down to more normal levels.”
If you are a landlord with a property available to let in Brighton & Hove, the current market conditions mean that now is an ideal opportunity to find your tenant. Please get in touch with our Residential Lettings Team who will be happy to help.
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