Attention investor landlords! Now, more than ever, your country needs you!
New data released by property website Rightmove, has shown that 63% of tenants who are currently in Private Rented Sector (PRS) residential properties expect rents to rise.
The number of tenants who expect rents to go up in the next 12 months is at a record high.
Rightmove’s data was gathered following a poll of 5,567 people who are currently renting or expecting to do so in the near future.
The survey found evidence of long-term demand, with over 33% of tenants expecting to be renting for three years or longer. This is the highest it has been since Rightmove began its consumer surveys three years ago.
With six out of ten tenants forecasting that their rents will be higher in 12 months’ time, the company said that tenants’ views were not so much music to landlords’ ears as the ‘sound of tenants crying for help’.
Although search activity by people looking for a place to rent has more than doubled in the last two years, available rental stock listed on the site is down by nearly 10%.
Miles Shipside, director of Rightmove, said: “Attention investor landlords! Now, more than ever, your country needs you! As well as potentially earning a good return on your investment compared to other asset classes, private landlords can help provide a long-term rented roof over a grateful tenant’s head. While hard-nosed rental investors may not welcome the appearance of too many new landlords if it results in downward pressure on rents, if you invest wisely it seems to be a genuine win-win of good rental yields for landlords and a secure stream of tenants paying a fair return.”
He warned that without a significant increase in rental supply, there is the danger of a rental bubble in some areas, with tenants having to commit too much of their disposable income and landlords ending up with arrears and voids.
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