Right now, is the perfect time to take advantage of the rental property market. New research has shown that multiple records have been hit, competition between tenants looking for available properties has doubled since last year, and asking monthly rent prices are increasing at the fastest rate ever recorded. The demand for rental properties is 32% higher than last year, yet the number of available properties is 51% lower, this huge supply and demand imbalance has led tenants to quickly jump to available properties and move in in just over two weeks on average. This competition has pushed asking prices to go up to £897pcm on average in the UK (excluding London), which is 6.9% higher than last year. This is still increasing, and researchers have predicted this to rise a further 5% this year. However, the higher asking prices don’t seem to be deterring tenants, which is good news for landlords. The average yield is at the highest rate since 2016, meaning the income from the property they’ve invested in was worth it.
In the North East, the rental market is flourishing, with average rent prices increasing to £718pcm, and this is predicted to keep going up. The yield for landlords here has hit a record at 7.9%. Being a landlord creates a sustainable, and steady income, and with the statistics of the current market, 2022 seems like the best time to either begin renting out properties or growing a portfolio. Firstly because of the almost definite success with tenants desperate for properties, it won’t be a struggle to find people interested. This takes the risk away, as it may seem daunting to get into buy to let properties. Secondly, the high demand has led to tenants offering a higher price in order to get a rental property, meaning you’ll get the most out of your investment, charging tenants maximum rent price for the value of the property, the high yield makes this an extremely profitable opportunity. Thirdly, this is an exciting opportunity, renting out properties is great to create a steady income with the option to build your property portfolio. There really couldn’t be a better time than 2022. It won’t take long for people to realize the opportunity in front of them, why not get there first?
At Signature, we want to help you in taking advantage of this opportunity, and with our property management service, we deal with the most difficult parts of your investment meaning you don’t have to do a thing. From tenant find, referencing and credit checks, maintenance management to keeping on top of legal compliance. At Signature, we are here for you.
See how we can take care of your investment for you, get in touch today!
*Statistics from Rightmove Q4 2021 rental tracker report https://hub.rightmove.co.uk/rental-trends-tracker-q4-2021/
