According to Zoopla, available rental homes are down by a third across the UK. Zoopla explained the cause was a 50% rise in demand in the last 18 months, with no noticeable increase in the number of rental properties coming onto the market since 2016.
The BBC revealed that strong competition amongst potential tenants has resulted in rising rental prices. This January, new lettings were up by 11.1% compared to January 2022. Property portal Zoopla also stated that rents have increased by 20% in the last 3 years.
The combination of high rental demand and low stock is creating excellent opportunity for landlords.
Increasing confidence of mortgage lenders could also benefit those seeking to purchase a buy-to-let. Whilst the Bank of England recently raised the base rate by 0.25%, mortgage lenders have responded with price reductions for 2 and 5-year fixed-rate mortgages. Alternatively, property portal Rightmove found that average mortgage rates have dropped by approximately 1.5% since late October 2022.
If you’d like some mortgage advice for an investment purchase, we’d be happy to introduce you to one of our trusted independent financial advisors.
If you’re a landlord in need of advice and guidance in regards to recent changes in regulations, our Lettings Team will be happy to help. We also offer a range of services to choose from.
Contact us today on: 01252 514000, or email lettings@mackenziesmith.co.uk.
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