Over the three months from May to July, chartered surveyors in Wales have reported that demand for rental properties has increased by a third. This continues the trend whereby demand for new properties is outstripping supply, as Welsh people continue to opt for renting instead of buying.
The number of social housing lets has also increased dramatically, which has reduced supply even further. The situation has been compounded by the increasingly common practice of landlords putting their properties up for sale at the end of tenancy agreements – 4.5 per cent of landlords are now choosing to sell, compared to 1% in the three months preceding May, June and July.
Director of Kelvin Francis Chartered Surveyors in Cardiff commented: “The combination of strong tenant demand and a limited stock of good quality properties on offer is pushing rents ever higher across much of Wales. This is the case both for houses and flats. The demand for rental properties means this is likely to continue for some time.
As more Welsh landlords are deciding to sell their properties, the type of insurance policy they have will also need to change. Since tenants would be required to vacate a property at short notice in the event of a sale, landlords cannot realistically rent out their properties – thereby requiring them to take out unoccupied property insurance for the period that the house or flat is empty. Investing in this type of insurance protects the landlord’s interests until a sale is successfully made.