Figures released in recent months have once again reported that the number of tenants looking for suitable rented housing is still very high, prompting more home owners to consider taking on extra properties to rent out to tenants across the UK. The increase in the overall number of tenants renting accommodation stems back to the massive drop in the housing market in the 90’s when many homeowners found they couldn’t afford to repay their mortgages due to steep rises in the Bank of England rates and subsequently mortgage repayments.
As a result, the opportunity arose for a variety of different private housing solutions to be made accessible to tenants with the introduction of specialist mortgages called by to let mortgages. These mortgages enabled home owners to purchase second properties for the sole purpose of leasing or renting them out to a range of tenants depending on their requirements and specifically targeted market. All the signs point towards a great time for investors and landlords to take on additional properties for rental purposes and doing their bit in easing the current tenant waiting lists.
Across the UK many letting agents are saying the same thing and that is that there is a shortage of different housing for different tenants such as terraced properties for DSS tenants and those with families who work. There is a calling too for and apartments and flats for students and city professionals desperate to find affordable property that is in close proximity to town and city academic buildings and businesses. What’s more is that for many tenants the prospects of renting a property are far more financially achievable than buying a house and paying the monthly repayments. What is more is that with a rented property, tenants are not held liable for the property’s maintenance.
Government figures show that although there may be a better time for first time home buyers to purchase their first properties within the next year or so, there will always be a strong need for a large number of new and seasoned landlords. Even if the property market improves, many will still prefer to pay rental incomes, having all repairs and other necessary works carried out by their landlord. Altogether this is great news for buy to let landlords and existing landlords wishing to expand on their portfolios or enter the rental market for the first time.
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