Here is the latest edition of the Property Options’ monthly update on the UK Buy To Let (BTL) market.
This update is by economist Chris Worthington, who is one of our regular PIM speakers.
Fortunately for BTL investors, the general trend in the growth in house prices is still positive.
According to the latest figures published by the Office for National Statistics, the average property price in the UK increased 5% in the year to August 2017.
There is also good news for investors in terms of rental growth.
The latest figures in the Rental Index published by Homelet show that:
- Average rents across the UK rose by 2.1% in September, compared to the same month a year ago
- Rents in London in September, year on year, rose by 1.9% – continuing the recovery that began in August, after falls throughout the spring and summer
- In the past year, rents rose in 11 out of 12 of the regions in the UK – rents fell by 0.1% in the South East
I now turn to a somewhat neglected subject in the BLT market – the tenants who are our customers. Businesses in general pay close attention to the needs of their customers and BTL businesses should be no different.
Whilst for many tenants renting is a lifestyle choice the ongoing squeeze on wages, rising house prices and insufficient mortgage finance are all heightening the shift from owner occupation to renting especially people in the age range 25-34.
A recent report from property developer Prime Centrum commented that
“The new generation of renters are making their requirements felt, these modern tenants have developed their tastes and preferences forcing BTL landlords to up their game.
Properties must be centrally located, have excellent transport links, offer a superior living environment, provide access to local amenities and provide added value like a gym, off street parking and a concierge service.”
Richard Waind director at Your Move commented:
“As the nature of the rental market continues to change it is positive for both tenants and landlords who benefit from longer tenancy agreements.
Not long ago we saw a rise in short term lets with many landlords viewing them as the most lucrative option.
However now we’re seeing a shift towards longer term rentals providing security for both landlords and tenants.”
Results from a recent survey undertaken by LSL Property Services found that a third of tenants would prefer a tenancy agreement with a minimum of three year term.
Find Out More
We will all be discussing the latest position on the property market, both in Bristol and across the UK, at our next PIM on Thursday 30 November 2017 at Holiday Inn, Bristol City Centre, 6-9 pm.
We hope you will join us then.
For more info and to reserve your place Click Below