Landlords benefit from rental boom
- 20th May 2008
- Landlord Property News
Landlords should have queues forming outside their available property to rent, says recent research.
Paragon, the buy-to-let mortgage provider, reveals in its report that there is unprecedented demand for private rental properties, with potential tenants even “gazumping” rival offers in order to secure a property.
The demand is a direct result of the recent uncertainty in the mortgage market and has pushed rents up to an average of £1,004 per month a rise of 14% in the last year.
John Heron, managing director of Paragon, says: “The recent lack of mortgage availability for potential first time buyers as well as a fall in confidence in the housing market has caused more people to stay in private homes for longer.”
The report highlights some of the reasons for the rental rise:
• Rented accommodation is no longer seen as a “stop gap” but as “suitable” long term accommodation.
• Numbers will rise fuelled by student numbers and increased immigration.
• There are now 2.6m households renting in England compared to 1.9m in 1996.
• The number of people renting is now at its highest since the 1970s.
Katy Waite, director of The County Homesearch Company, agrees with the reports findings. She has been “inundated” with requests from prospective tenants and says: “Landlords have people queuing up to rent their properties, ready to pay full deposits on the spot, and the full rental price without question. If a client does not move quickly they face losing out.”
Landlords have people queuing up to rent their properties, ready to pay full deposits on the spot, and the full rental price without question.
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