Busy times ahead for buy-to-let sector
Britain’s residential landlords may experience several busy months ahead and a good start to the New Year, as demand for residential properties remains high among tenants looking to rent either for lifestyle reasons, or because they continue to be locked out of the homeowners’ market. Leaders, the UK’s most prominent independent letting agency, found that January is already getting off to a busy start. Paul Weller, Leaders’ managing director, noted that the lack of mortgages is just one of the reasons why Britons are more likely to rent in the future. The private rental sector has gone through very positive developments in the past several years, and the number of high quality, modern and classy rental units has increased markedly. As such, renting for some is not a burden, or a second rate accommodation option, but an actual lifestyle choice. For example, while most young professionals could not afford to purchase a high-end home in Central London or in other expensive neighbourhoods, they may be able to rent one and enjoy that same lifestyle.
But Weller agrees that the shortcomings of the property market are keeping some off the homeowners’ ladder. One of the most pressing problems is a lack of residential properties for sale, coupled with the unavailability of affordable loans. Minimum deposit requirements are so high that most first-time home buyers are locked out of the market. Equally problematic for housing sales is the uncertainty which continues to envelope the industry. Many analysts continue to predict a drop in residential property values again later this year, and this is prompting some to weather the storm by renting for the near future.