Experience Invest reports on figures stating that the UK managed to increase its supply of private rental properties in July 2015. However numbers also indicate that demand for such properties is starting to fall across the country.
Making money from rental property
It’s clear that there’s still plenty of money to be made from investing in private rented property. Those who invest in the buy-to-let sector, for example, have recorded staggering profits of 1,400% since 1996, according to the Guardian. UK rental rates continue to climb; the Telegraph reported that UK rental rates reached their highest level on record, £811 on average per month, in July 2015.
Supply vs. demand
The latest report from the Association of Residential Letting Agents (ARLA) shows that the UK increased its private rental property stock in July 2015. Property Wire reported that the ARLA figures reveal that agents managed an average of 189 properties per branch in July, compared to 178 properties per branch in June.
The ARLA report also revealed that demand for private rental property slipped slightly across the UK from June to July 2015. According to the figures, 36 prospective tenants registered per ARLA branch in June, whilst only 35 registered per branch in July. London managed to buck the national trend; 36 prospective tenants in London registered per ARLA branch in June, whilst 40 registered per branch in July.
Achieving a balanced and stable sector
ARLA managing director David Cox commented on the release of the report. He said that: “To finally see a rise in available rental properties is definitely a step in the right direction; although with demand remaining the same, we still have a long way to go in achieving a balanced and stable private rented sector.”
Cox went on to note: “Following the changes to pensions made in April, the fact that a third of agents are predicting supply will continue to increase over the next five years could be a result of people releasing equity from their pensions to invest in the buy to let market.”
A number of indicators suggest that the UK’s private rental property sector is performing well right now. Yet the market faces a number of challenges it needs to overcome before it stabilises. If you want to keep up to date with this story, follow Experience Invest on Twitter.
Experience Invest have been trading since 2004 and we’ve worked with all types of investors from first timers to high-NET-worth individuals and corporate clients. As market leaders in UK residential investments, we specialise in high demand, high yield property investments. For more information, or to discuss your own investments needs please contact Experience Invest.