UK Rental market grows 20% from 2019
The UK market has seen a huge demand from tenants in the private rental sector, with figures being up by approximately 20% from the previous year.
This is naturally leading to an increase in demand for rental properties across Wales, making it an ideal time to invest in buy to let properties. In our Cardiff Bay office, we have a dedicated Sales Team that specialise in purchasing investment properties and renting them out for you, on a fully managed service.
There are a few contributing factors to the surge in the rental market. Rightmove director Miles Shipside said there are many other possible reasons for people’s haste in looking for new rental homes: “Where some people have enjoyed lockdown, others’ relationships haven’t survived it and this has had knock-on consequences.
“There could be people who need to move because of job losses too. And working from home has left a lot of people looking for a change in surroundings.”
One reason for the growing number of prospective tenants lies with the mortgage market. Some first-time buyers are finding it difficult to source a mortgage as lenders remain cautious about offering high loan to value products. For others, job uncertainty means they are likely to continue renting for longer. Lack of job security (65%) is seen as the main barrier to someone buying a property currently.
First-time buyers often rely on 90% loan to value mortgages to make their first purchase. According to the data, around 20% of all mortgages in 2019 were taken out on this basis. This has massively contributed to a decline in purchases and more people staying in the rental market.
At Keylet Executive, we have experienced the boom first hand, with a huge increase in demand for rental properties in Cardiff and the surrounding areas. If we can help you invest in buy to let property, or manage your property portfolio, contact us here.
Published: December 15, 2020BACK TO NEWS LIST