It will likely come as no surprise that there was significant growth in the rental market last year. Not only did rental prices increase, Zoopla reported that the imbalance of supply and demand pushed rents to the highest seen in 10 years for single income households. The requirement for rental properties was 46% above typical levels whilst in contrast the amount of homes available was 38% below the five year average.
As we look ahead, it is expected that rental growth is likely to slow in 2023 as Zoopla further reports that single renters are spending 35% of their income on rent and as we can all appreciate there is only so much people can afford to pay.
With this possible slow in growth it is understandable that there could be a nervousness around purchasing a buy to let property and embarking on becoming a landlord, however there are many positives to the market and it is important to recognise that any slowing does not mean decline.
Along with rents currently being at record highs, and the supply vs demand discrepancy anticipated to remain for the foreseeable, prospective tenants are increasingly looking to commit to longer tenancies to ensure stability in what is a competitive market. Additionally the mortgage rates uncertainty has seen some first time buyers postpone their purchase plans in an effort to save a larger deposit or secure a better rate in the future.
If you’re considering becoming a landlord the new year is a great to time to get in touch with your local lettings agency to talk through the steps of letting a property and the benefits of having that property managed by professionals.
