In a recent report in The Telegraph, it is stated that demand for rental properties has soared by 18 per cent across Britain since last year, based on data from Sequence, which crunched prices from hundreds of UK lettings and estate agencies.
Sequence also found that month-on-month, demand has risen by 7 per cent since June across the UK which is good news for landlords. However the bad news is that while demand rose over the last 12 months, supply has dropped by 19 per cent nationally, and 1 per cent since June.
London saw demand surge by over 50 per cent in the year to July, while supply decreased by 3 per cent. The average non-London property cost £697 a month in July, while the London average reached £1,515 – a rise of 6 per cent.
Stephen Nation, Sequence’s head of lettings is quoted in the report as saying “The rental market across the UK is increasingly competitive with demand rising at the same rate at which supply is dropping [while] activity in London’s rental market is even more abuzz,”
While many landlords will have seen first-hand the rising demand for rental properties, the national shortage of properties could become even more acute in the coming months as the government relaxes the pension rules. Many people with small pensions may consider taking a cash lump sum to invest in rental properties as a way to bolster their retirement provisions.
If you’re planning to purchase a buy to let property in the coming months, be aware that a regular home insurance policy will not cover a property that is being rented out. Specialist let property insurance, however, is designed to give you the protection you need. With the increase in rental demand and costs you may also like to consider rent guarantee cover.
Contact Click4Quote.com today to find out more about our specialist buy to let property insurance or to obtain a quote. We can quote for single let properties or a portfolio of properties and we also have legal expenses, rent recovery and rent guarantee options available. Why not check out our 10 Tips for Success in the Buy- to-Let Market in our Tips and Guides for Landlords section of our website.