Opportunities for Landlords & Investors as Rent Increases
Landlords are facing peak demand for properties with the most competitive rental market ever recorded. Outside of London, national average asking rents hit a new record of £1,088 per calendar month (PCM) in March (Source: Rightmove).
The portal's Q1 Trends Report has concluded that average rents are now 15% higher compared to two years ago. Landlords are achieving strong rents with minimal void periods, seeing their highest return on investment (ROI) potentially ever.
“We are currently facing the lowest supply of property we’ve witnessed in years.”
Why has rent increased?
COVID forced many landlords into liquidating their properties to create security for their personal life. As outlined by haart Area Director of Metro, Andrie Neophytou; “We are currently facing the lowest supply of property we’ve witnessed in years.”
This has hugely impacted the rental market due to a surge of prospective tenants looking for properties with a reduced amount of properties. Quite simply - the demand is outweighing the available supply.
Now, landlords are receiving astronomical amounts of interest, due to the lack of properties. One major benefit is that landlords can choose from a range of prospective tenants. With this in mind, industry experts are emphasising that now is the perfect time to advertise a property to rent.
How should landlords approach the new rent market?
Since the pandemic, hybrid working is becoming increasingly common, while prospective tenants are moving outside of price hotspots to reduce their living costs. Consequently, landlords looking to increase their portfolio value are advised to keep an eye on areas within commuting distance to city centres.
“Buying in an area that is increasing in value is a great investment strategy for capital growth” adds Nicholas Browne, Area Director of M1 & North London.
This provides landlords with an opportunity to advertise properties in these growing areas to tenants with the security of multiple inquiries.
Meanwhile, experts are advising caution to landlords looking to exit their portfolio, highlighting that given the strength in the market, there is a huge opportunity to strengthen rental yield whilst increasing their portfolio value.
Why choose haart for your investment?
“When choosing an investment property it’s key that you do so with your head and not your heart. Look for the best return on your investment and best potential capital growth,” said Morgan Wilson, haart Wales & West Area Director.
haart are helping landlords find their ideal tenants, providing reassurance and certainty.
Contact your local lettings branch to receive expert advice. Whether you’re a new landlord entering the market or an experienced landlord looking to review their current portfolio needs, our teams are on hand to help.
For more information and guidance, please visit our Landlords Advice section.