The year ahead is looking bright for the rental sector, according to a landlord sentiment survey conducted by LSL Property Services.
It found that in the past six months 41 per cent of the 2,195 landlords polled saw a rise in tenant demand, with just one in sixteen seeing a fall. The majority of landlords predict demand will increase further this year, with 10 per cent expecting a decline.
Nearly a fifth (18 per cent) of landlords therefore anticipates growing their portfolio of properties over the coming twelve months, while 16 per cent already expanded in 2013.
David Newnes, director of LSL Property Services, comments: “The rise in house prices is evidence of the underlying buoyancy in the property market and the stabilising of rent rises is an indication of the current healthy state of the rental sector. Landlords are therefore in a prime position to benefit from the strong yields on properties and aspiring buy-to-let investors can be encouraged by the climbing tenant demand, as not only does it signify the excellent long-term investment opportunity, but also demonstrates the continued appetite for rental homes.”
“Demand for rented accommodation is strong, exemplified by the fact that the number of lettings, new viewings and applicants are all rising. There are strong foundations for prosperity in the rental sector, fuelled by increased economic optimism and future job creation. Against the backdrop of growing economic stability, more confidence is driving people forward in search of the attractive deals on offer across the buy-to-let mortgage market, which will allow them to benefit from the attractive returns.”
Over three quarters of landlords (77 per cent) believe now is a good time to buy or sell rental properties. Of those who think now is a good time to buy, 71 per cent cited attractive property prices and half highlighted the better capital returns on offer compared to other forms of investment, while 47 per cent pointed to strong tenant demand as a key investment driver.
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