{"id":6092425,"date":"2023-02-07T08:50:35","date_gmt":"2023-02-07T08:50:35","guid":{"rendered":"https:\/\/www.buyassociationgroup.com\/en-gb\/?p=6092425"},"modified":"2023-02-03T10:13:57","modified_gmt":"2023-02-03T10:13:57","slug":"62-tenant-demand-year","status":"publish","type":"post","link":"https:\/\/www.buyassociationgroup.com\/en-gb\/2023\/02\/07\/62-tenant-demand-year\/","title":{"rendered":"62% of landlords report greater tenant demand over past year"},"content":{"rendered":"

Tenant demand in the private rental sector remains sky-high in many areas, and the current climate suggests it won’t be abating any time soon.<\/strong><\/p>\n

Almost two thirds (62%) of buy-to-let landlords<\/a> say they have seen an increase in tenant demand for their rental properties over the past 12 months, according to a survey released by bridging loan broker Finbri. This coincides with overall demand for rental properties being up by 23% year-on-year across the UK.<\/p>\n

This heightened need for homes in the private rented sector looks set to continue, as 75% of tenants involved in Finbri’s survey<\/a> said they didn’t think they would be able to own a property in 2023. More than ever, landlords are essential in providing much-needed accommodation in areas of high demand.<\/p>\n

Costs are one of the biggest barriers to tenants getting onto the property ladder, exacerbated by the cost of living crisis, and 54% of tenants said that they struggled to save up enough money for a deposit on a property of their own.<\/p>\n

Staying in the market<\/h4>\n

When tenant demand is high, this often provides buy-to-let landlords with a greater impetus to stay in the market and reinvest, although it is essential to choose property<\/a> in an optimum location in terms of tenant need and the potential for yields<\/a> and capital growth.<\/p>\n

In Finbri’s survey, 45% of landlords said that, despite the current economic climate, they believe now is a good time to invest in the property market<\/a>. Although growth in house prices has slowed, it remains a strong housing market nonetheless, and high tenant demand boosts this appeal.<\/p>\n

A further 45% also said that they plan to invest in more property in 2023, while 30% said they wouldn’t invest at present and 25% were unsure.<\/p>\n

In order to combat cost rises, including higher mortgage rates off the back of the Bank of England hiking its base rate<\/a>, 52% of landlords surveyed said they plan to increase rents.<\/p>\n

Finbri’s Stephen Clark says: \u201cThe base rate is directly linked to the cost of borrowing, so it’s not surprising that landlords are looking to increase rents.<\/p>\n

\u201cIt’s not just tenants who may be affected by rent increases if interest rates continue to climb. The UK housing market as a whole could experience further undersupply and combined with a recession looming, there is the growing risk of a property market crash. With the base rate expected to reach 4.5% this year, 45.35% of landlords would consider alternative investments, whilst 44.66% would look to sell their investment properties.<\/p>\n

\u201cHowever, despite the looming impact of increasing rates on landlords, our research shows that 45% are planning to invest in property this year.\u201d<\/p>\n

Tenant demand significantly higher than pre-pandemic<\/h4>\n

In Rightmove’s latest rental tracker<\/a>, which honed in on figures from the final quarter of 2022, it revealed that the number of people enquiring about rental property was up by 53% compared with pre-pandemic 2019, showing a huge surge in tenant demand that has been sustained.<\/p>\n

When looking at the year-on-year data, tenant demand was up by 7% compared with Q4 2021. However, in a sign of the pressure easing slightly, the number of available homes to rent was also up by 13% compared to last year – the biggest annual jump seen since May 2013.<\/p>\n

This means competition levels are improving for tenants, although landlords in many areas remain inundated by enquiries when they list a property to rent.<\/p>\n

In terms of rental costs, Rightmove expects average asking rents for newly available rental homes to increase by 5% over the course of 2023, “unless there is a significant addition of available homes to rent”.<\/p>\n

As of Q4 2022, according to Rightmove, the average national rent per month was \u00a31,172, a 0.9% increase from the previous quarter and a 9.7% increase from the previous year.<\/p>\n","protected":false},"excerpt":{"rendered":"

Tenant demand in the private rental sector remains sky-high in many areas, and the current climate suggests it won’t be abating any time soon. Almost two thirds (62%) of buy-to-let landlords say they have seen an increase in tenant demand for their rental properties over the past 12 months, according to a survey released by… Read more »<\/a><\/p>\n","protected":false},"author":1069,"featured_media":6088286,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[2],"tags":[91,98,10],"acf":[],"_links":{"self":[{"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/posts\/6092425"}],"collection":[{"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/users\/1069"}],"replies":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/comments?post=6092425"}],"version-history":[{"count":5,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/posts\/6092425\/revisions"}],"predecessor-version":[{"id":6092432,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/posts\/6092425\/revisions\/6092432"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/media\/6088286"}],"wp:attachment":[{"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/media?parent=6092425"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/categories?post=6092425"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/tags?post=6092425"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}