Rental demand across the UK continues to soar, with properties snapped up within a record low of 12.7 days and five tenants competing for each property.
Countrywide reported this morning that tenant demand shot up by 10.8% in the third quarter of this year, compared with the same period last year, and by 11.9% from the second quarter of this year.
The group’s quarterly research into the private rental sector also found that the volume of viewings increased by 17.8% compared to the previous quarter, an annual increase of 8.2%.
Demand from investors is also strong, with an increase in the first-time investor category.
In Q3, 23.5% of all landlords were those investing in property for the first time, compared to 18.7% at the start of the year.
Margaret Longden, co-managing director at Countrywide Residential Lettings, said: “Since the beginning of the year we have seen a significant increase in tenant demand for private rental property, and although there are still some slight fluctuations that can be linked to seasonality, we’ve found that the demand for rental property has remained incredibly high throughout the year.
“We expect this demand to continue over the coming months, not only because many first-time buyers are struggling to save the substantial deposits currently required to purchase property, but also because a lot of people now see renting as a realistic alternative to home ownership, whether it be because they are awaiting further house price falls or because they are attracted to the flexibility that renting can offer.”
%20-%20IMAGE%20Client%20Accounting%20%E2%80%93%20what%20are%20your%20options.jpg)
Comments
Thank you @industry observer
Thank you @Ray
I dont think they were based on a cystal ball? More than enough metric information available to support 7% reduction.
The smart money buys cash at BMV or what I would call TMV True Market Value.
Once the weallth held in property or invested has been sucked back out it will recycle again.
I dont think it has been any different before has it?
@Ray Evans
I'd say 7% pur valiue loss next year is not unrealistic but whilst not answering for Rick maybe he is using a very generous 4% value loss linked with 3% opportunity cost loss from not having the purchase funds on deposit (ISA of course).
We can all stick fingers in the wind and guess but it is possible if the gloabl economy really does have a meltdown, euro collapses etc etc that prices could fall 50%
My guess is 10%+ lower end of 2013 than now for what it is worth. And BoE rate probably where it is now.
@Rick Deckard
7% - Where did you get your crystal ball from?
Investors? Why would you want to stick 15% deposit into a property only to lose 7% over the coming year? More like mugs.
If you wait another 12 months you certainly wont be missing out and more likely to see yields return to where they should be. There is an abundance of repos due to come on a colleague of mine did over 35 draindowns last month on stock that has yet to come to market in a small post code territory. Don't believe this load of old hype