East Midlands is the UK’s buy to let hot spot as supply fails to meet demand
Landlords looking to add to their rental portfolio are being encouraged to purchase buy to let property within the East Midlands.
Andrew Granger & Co, believes supply for rental properties in the region will fall significantly short of demand in the next two to five years. The National Housing Federation (NHF) supports this view and predicts rental rates in the East Midlands will increase by 53 per cent by 2020, 6 per cent more than the predicted national average, taking the average rent for the area to £784.
Fewer than 9,000 new homes were built in the East Midlands in 2011 and the NHF estimates that 22,000 residential properties need to be built to meet demand.
Jill Griffiths is the Letting Partner at Andrew Granger & Co:
“Construction has stalled over the past five years since the beginning of the economic downturn and we are now seeing the impact of this on letting prices. With fewer new homes being built, the region is in urgent need of more affordable housing. The rental market is also experiencing increasing demand as potential first time buyers are deterred by market conditions and high mortgage deposits.
“With the average private rent in Leicestershire and Rutland currently £511 a month, these predictions of record rises will inevitably be bad news for renters. Inevitably, it largely comes down to the laws of supply and demand: if there aren’t enough houses for the region, prices will escalate. However, interest rates for buy to let mortgages are historically low, making it a good time for would-be landlords to take the plunge and enter the market.”
Whilst based in the North West of England, Goldsmith Williams provides a nationwide service and can support landlords looking to capitalise on these latest figures and purchase buy to let property in this region.
Content correct at time of publication