Rental Property in High Demand
Many landlords are remortgaging properties and expanding their portfolios. According to figures presented by the Association of Residential Letting Agents (ARLA), 21 per cent are planning to purchase additional properties during the third quarter of this year. All because the demand for residential property for renters is continuing to rise.
There has been a constant rise in the need for rental property for the past two years. Many homeowners with homes for sale for long periods may want to consider opening the property for renters. The ARLA reported that rental property has hit an all-time low,. Seventy per cent of its members reported having more tenants on their books than available accommodation. With the fact that a large majority lack enough rental properties for those seeking housing, over a third of the responders to the survey believe the demand for rental property will be even higher in 12 months time. Part of the increase in rental property can be attributed to many being shut out of the first home purchase market due to the requirement of such large deposits by lenders. Buy to let remortgages remained constrained in the market. The survey reported that 40 per cent of respondents who had tried to secure a remortgage or mortgage between April and June over half reported it was more difficult than before to achieve financing.