A perfect storm within the rental property market is representing a big opportunity for property investors.
That’s according to the owner (Jon Graham) of the West Yorkshire based Estate and Letting Agents, Dwell Leeds.
Zoopla’s Q3 Rental Market Report shows the average annual rent has gone up by 12.3% year on year, as of September.
Meanwhile, the report also highlights a 46% fall in the number of properties available to rent in the UK versus the 5-year average.
Director of Dwell, Jon Graham, says – “In my 18 years in the industry, I’ve never seen such a stark lack of properties available to rent and such high levels of demand from tenants.”
“In the Leeds area, we’ve seen a 11% jump in rents in the past year alone.”
“It very much looks like this trend is set to continue, and although it’s a very difficult time for home-movers in the rental market, this represents a real opportunity for investors with a long-term outlook.”
“Particularly as we now see house prices stabilising and with 13% more properties on the market now compared to 2 months ago”.
Last week, building society Nationwide said the average house price in the UK did not change between August and September, ending more than a year of uninterrupted growth.
A report in the Financial Times highlighted this with Nationwide’s Chief Economist Robert Gardner saying “further signs of a slowdown had emerged over the past month”.
Similar signs of a fall in house prices were predicted last week by experts in the Guardian, with some suggesting a house price fall of around 10% over the next year, with others, including Credit Suisse, suggesting up to 15%.
All indications are that it’s now leaning to becoming a buyer’s market, particularly those with a long-term view to their investments.
