The opportunities available for landlords on the property market are better than ever in 2020. Demand from prospective tenants has remained strong over the past year and is showing no signs of slowing down. This makes it the perfect time for landlords to expand their portfolio to meet the demand; with rental properties being snapped up in no time.
The considerable competition tenants are experiencing battling for viewings reduces the risk of homes being left vacant unexpectedly; leaving landlords with increased peace of mind. Findings reported by Home Let show that there has been an increase in rental value across the whole of the UK. The North lead this variation with the North West rental value increasing by a staggering 8.3%, and seven UK regions are each reported to have more than a 5% increase.
As well as higher demand, the rents increase can also be linked to a number of societal factors. There has been a resilient economy, higher wages, with low unemployment rate, allowing private tenants to still afford the rise in price. The Tenant Fees Act which was thought to move some of the fees from tenants to landlords, seems to have actually found its way back to tenants in the higher rent prices. There has also been a rise in the average age of renters, also adding to the demand.
David Cox, chief executive of ARLA Propertymark, said “looking ahead to 2020, we hope the government recognises the importance of increasing supply for tenants and uses it as an opportunity to make the market more attractive for landlords. This will encourage more landlords back into the market as well as ensure that tenants, including those who are most vulnerable, are not at a disadvantage in being able to find a suitable and affordable home to rent.” The rental market has shown great resilience over the past year despite the Brexit implications remaining unknown. The strength of the private rental sector is set to continue into 2020 conforming to the basic economic principal of supply and demand.