The UK rental market has continued to see strong month-on-month growth since the start of the year and whilst city centre lettings have taken the biggest hit during the pandemic, by contrast, well-connected or desirable suburban or semi-rural towns have been resilient.
With a shortage of quality rental stock, landlords have also been able to increase their rents on average by 5.9% since April 2020. There’s also more good news for landlords as the time it takes to let property is down to 8 days.
The Chancellor’s generous extension of the stamp duty holiday has helped propel property prices by around 8.9% across the UK, and whilst there is no hiding from the tax changes landlords are still coming to terms with, having a property rental as part of your investment or retirement portfolio not only provides a solid 5-6% annual yield but also the knowledge of long-term property price growth.
With demand in the private rented sector at record-breaking levels, there has also been a strong demand for mortgages from buy-to-let landlords. Lenders have held up their side of the bargain with the number of mortgage products available at the highest level since the first lockdown. Plus, buy-to-let investors with a healthy deposit can expect a two or five year fixed rate of around 3%.
According to Spencers Estate Agents Lettings Director Tracy Harding, another factor that has helped fuel the rental sector demand has been the easing of Covid restrictions.
“One of the government’s measures to protect tenants during the pandemic was creating a ‘six month Covid eviction rule’, those long notice periods ended in March. Everyone is also moving around freely, making viewings much easier.”
“The UK property market has been very buoyant the past year and we may have seen some landlords ‘cash in’ long term investments which have helped create a shortage of stock. With prices rising and renters up, it’s arguably the perfect time to be a landlord.” Continued the Spencers New Forest Director.
For new landlords, the lure of trying to make a quick buck during the summer months with short lets from Airbnb has also come to an end. With a deal struck between the company and HMRC regarding Airbnb sharing income data on the 225,000 hosts, the taxman will be looking to recoup whatever they are owed.
With years of experience, the team at Spencers New Forest are able to provide all the support landlords need, whether on the latest legislation, handling deposits, repairs or dealing with tenant issues.
As New Forest locals, we’re also perfectly placed to advise landlords on the smartest investments or ways to maximise your rental income, so why not get in touch?