Tenant demand is up and rents continue to rise at a slower rate than inflation according to the results of a sentiment survey of more than 1,100 landlords.
Conducted by Your Move and Reeds Rains, the survey found that 41% of landlords have reported seeing a rise in tenants interested in their properties. Resulting in a reduction of void periods, the majority of landlords do not intend to increase rents in the next year in order to remain competitive.
In addition, one fifth of landlords expect to expand their portfolios to house an ever growing ‘Generation Rent’.
Steve Bolton, Founder and Chairman of Platinum Property Partners (PPP), said: “With many potential buyers priced out of an increasingly expensive property market, tenant demand has soared in recent years. The flexibility and freedom that renting has to offer has also attracted a rising number of mobile workers and young professionals. In addition, it is welcome news for tenants that rents are expected to rise at a lower rate than inflation.
“This tenant demand is good news for landlords and it is therefore refreshing to see that 20% of them recognise the need for more rental accommodation, especially when as many as seven tenants are now chasing every new property on the market*.
“As increasing numbers of people begin to choose rented accommodation as a lifestyle choice, the quality of the properties they are living in becomes ever more important. Landlords have to cater for this demand and a more diverse and professional tenant base. For many, making more efficient use of the current housing stock is the best approach and utilising buy-to-let models such as Houses of Multiple Occupation (HMO) for professional tenants is an excellent way of doing so.”
