Rents are Going Up, Up, Up
It may be cold outside. However, the property rental market remains hot. According to Knight Frank, average rents are set to increase by 14% from January 2018 to December 2022. This is on top of the anticipated 1.2% increase in 2017. 59% of lettings agents are expecting to see rent price increases next year. 70% of letting agents feel that the ban on letting agent fees will also add to the increase in rents.
Even with the recent changes in legislation such as the 3% stamp duty surcharge on purchases, buy to let remains an attractive investment proposition. In the 3 months preceding October, 17% of all mortgages were buy to let mortgages. Buy to let mortgages and first-time mortgages were more popular than re-mortgages in the 3rd quarter of 2017.
The predicted increase in rent is a welcome relief for landlords who may have recently been stung by changes in the law. The increase in rent will help savers in their fifties to consider diversification into the property market. As mortgages are still quite cheap, investors are still investing in the buy to let market.
Currently, the total value of the private rented sector is £1.4 trillion. This is a 6.4% increase over last year and the market is not showing any signs of abatement. Property investment remains a lucrative proposition for many people. It is a long-term proposition and you should always take advice before venturing into this sector.
This is great news if you already hold rental property stock. If you’re new to the property rental market, then now is a great time to invest in your first buy to let. Robert Oulsnam and Company has a very strong lettings department and manages many property and tenant types with both professionalism and efficiency.
If you’re looking to buy your first rental property or increase your portfolio, we can help you here too. We have a lot of good property stock that would make an excellent rental proposition. Please call us and we can discuss this in detail.
If you would like Robert Oulsnam and Company to manage your portfolio for you, please get in touch with Robert Oulsnam and Company. We’re an award-winning Estate Agent having won a total of 16 awards in 2017!