High quality accommodation in the private rented sector attracts the best tenants and can generate the highest yields, as non-decent rental homes become a thing of the past.
New research has revealed that the percentage of “non-decent” homes being privately rented in the UK has fallen by almost a fifth, down to 24.5% during the last 10 years. While this still means that almost a quarter of rental properties are in need of attention, according to the ONS in research published by InterBay Commercial’s, the vast improvement shows how attitudes and standards are changing across the industry.
Over the same time period, the sector has ballooned by around 45% as people rent for longer before they buy, and renting over the long term and into later life becomes more normalised. As demand for rental property continues to climb, landlords are competing to attain the best tenants and keep their properties occupied.
The research by InterBay revealed that landlords spend an average of £12,000 refurbishing their rental properties, with 70% doing so to generally improve the property they were offering, and 45% carrying out improvements in the hope of increasing the property’s value or rental yield.
Darrell Walker, head of sales at InterBay Commercial, said: “It may be an easy target for political point-scoring, but the private rented sector has been a success story since the financial crisis, catering for a growing proportion of the population that either cannot or chooses not to purchase a home.
“As the PRS has grown, it has also professionalised. As it has done so, the standard of accommodation for tenants has improved drastically too.”
Alternatives to refurbishment
By investing in a new-build, or newly converted or renovated project, landlords can save themselves the refurbishment costs. Common improvements made by landlords include things like insulation, replacing boilers and improving kitchens and bathrooms. None of these improvements are necessary with a new-build, and the fact that most aspects of the property are brand new will mean that no significant amount of money should need to be spent on refurbishment for a long time.
Brand new properties are also hugely enticing to tenants, who are more than ever looking for high quality, attractive and often more energy-efficient accommodation that they can call home. A property with smart home features, a state of the art kitchen and bathroom and newly fitted decor will appeal more than an older home, and also require less upkeep.
Even if the property isn’t newly built, the number of conversions taking place across the country is on the rise, with many ex-commercial period properties being turned into modern rental apartments. These carry the added benefit of having character which many people look for in their home – whether or not they own it.
Investing in new property
At BuyAssociation, we introduce investors directly to developers with major projects going up across the country. Investments are made off-plan, either while a development is being built or when it is still in its planning stages, meaning competitive prices and excellent potential for capital appreciation as well as rental yields.
From new-builds to full-scale renovation projects, all our investments are completed to a high standard, meaning investors and landlords – as well as owner-occupiers – won’t have to worry about refurbishment costs for a long time.
With some projects close to completion, and others at the very early stages, we’ve got something to suit most investment goals. Have a look at our investments page to see some of our most recent projects.
