All-time high in demand for rental property

From Robert Ulph on August 19, 2021

Latest reports on the private rented sector show that there are more tenants recorded than ever before. Even with decreasing rental stock, there is an average of 88 new prospective tenants recorded per branch across the country.

As one of the largest local agents, at Pennington, we know how strong the local market is and in line with these national results, we too are finding an increasing demand with a supply shortfall. This all means that rents are healthy but what does it mean for those thinking about investing in property?

With the turmoil of the past 18 months, those who may have considered investing in or continuing with holiday lets may be less confident now, compared to long-term rental as the stability and guarantee of income is a significant factor for many. The question of buy-to-let investments is, perhaps unsurprisingly, one I get most questions about. So, if you are considering a BTL and you have the finance to do so, is now a good time to invest and what should you be buying?

As with any investment you make, I would always advise to do your research. A successful investment will depend on what you want to achieve and the longer-term plan you have. Tax changes over the past few years have meant that new investors might be looking at alternative strategies and while I can’t give advice on your personal tax liabilities, I can work with you to make sure that you get the best value from your investment.

I have seen too many times BTL properties bought almost on a whim. Investors may have bought in a certain area because they liked it, but I always look to advise how to get the best return on their investment in terms of where to buy, what to expect to pay for the property and what return to expect in rental income.

As well as initial sale price you will also need to look at what rents have been achieved in the past, how long it will take to let, what your potential outgoings will be for the property, also what is required of you as a landlord and more importantly what regulations you need to adhere to.

For many, the lettings market can feel like a minefield, as there are many potential pitfalls with letting a property. If you are not up to speed with legislation and the changing implications of owning a BTL property, you could leave yourself exposed to penalties and incur hefty fines and financial losses as a result.

The best advice I can give is to get assistance from a professionally qualified agent. At Pennington we have a number of in-house licensed members so there is always someone on hand to assist.

I have assisted hundreds of first-time landlords and seasoned investors purchase the right BTL property, so please do not hesitate to contact me for any advice.