Increased competition in the buy-to-let market means that most rental properties are now of a higher standard than ever, an industry body has claimed.
May 8, 2007 (Press Release) --
Increased competition in the buy-to-let market means that most rental properties are now of a higher standard than ever, an industry body has claimed. Recent reports from a variety of sources have indicated that the rentals sector is enjoying an unprecedented level of demand., fuelled by several factors including ever-increasing house prices and an influx of immigrants who do not have the necessary capital to purchase a property outright.
The recent upturn in demand has "rescued and revitalised" the rental sector, according to the Association of Residential Letting Agents (Arla), a professional and regulatory body for letting agents in the UK. Spokesman Malcolm Harrison says the increasing number of buy-to-let investors "has brought in good landlords who have got good quality properties", as well as making the market "competitive - which is good for the tenants".
As a result of higher standard properties becoming available to the renter, the average length of tenancies is going up, according to Arla statistics, with tenants on average now staying in a property for 17 months - and 25 per cent of tenants have been in their property for two years or more. Increased tenant satisfaction may be partly ascribed to the fact that rental properties are now usually structurally sound and "nicely furnished", says Mr Harrison, because "investor landlords are going to be careful what they invest in - they're going to make the property competitive because they want to let it quickly".
Another factor of interest to the buy-to-let investor is the increased acceptance of renting a home. According to a recent survey undertaken by Alliance & Leicester, it is now more "socially acceptable" than ever before to live in a rented home. The building society predicts a 41 per cent increase in the size of the buy-to-let market over the course of the next ten years, describing it as "buoyant".
Stephen Leonard, director of mortgages at Alliance & Leicester, remarked: "Demand for rented property has been growing steadily in recent years and returns on buy-to-let have increased. This growth is expected to continue - as the number of renters rises further and buy-to-let becomes even more attractive to both existing and potential landlords."
Mr Harrison agreed, saying he has seen a recent "change in culture". "People are happy to live in rented accommodation now", he remarked. "People are not being in such a rush to get onto the property ladder and all these various components come together in a buoyant, sustainable, private rented sector market."
The recent upturn in demand has "rescued and revitalised" the rental sector, according to the Association of Residential Letting Agents (Arla), a professional and regulatory body for letting agents in the UK. Spokesman Malcolm Harrison says the increasing number of buy-to-let investors "has brought in good landlords who have got good quality properties", as well as making the market "competitive - which is good for the tenants".
As a result of higher standard properties becoming available to the renter, the average length of tenancies is going up, according to Arla statistics, with tenants on average now staying in a property for 17 months - and 25 per cent of tenants have been in their property for two years or more. Increased tenant satisfaction may be partly ascribed to the fact that rental properties are now usually structurally sound and "nicely furnished", says Mr Harrison, because "investor landlords are going to be careful what they invest in - they're going to make the property competitive because they want to let it quickly".
Another factor of interest to the buy-to-let investor is the increased acceptance of renting a home. According to a recent survey undertaken by Alliance & Leicester, it is now more "socially acceptable" than ever before to live in a rented home. The building society predicts a 41 per cent increase in the size of the buy-to-let market over the course of the next ten years, describing it as "buoyant".
Stephen Leonard, director of mortgages at Alliance & Leicester, remarked: "Demand for rented property has been growing steadily in recent years and returns on buy-to-let have increased. This growth is expected to continue - as the number of renters rises further and buy-to-let becomes even more attractive to both existing and potential landlords."
Mr Harrison agreed, saying he has seen a recent "change in culture". "People are happy to live in rented accommodation now", he remarked. "People are not being in such a rush to get onto the property ladder and all these various components come together in a buoyant, sustainable, private rented sector market."
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