Significant growth in buy-to-let
Latest figures from the Royal Institution of Chartered Surveyors (RICS) suggest that the buy-to-let market grew significantly during the second quarter of the year.
In a quarterly survey of its members the RICS found that over 29% more chartered surveyors recorded a rise rather than a fall in tenant lettings. The figure compare with 15% during the previous quarter.
In addition, instructions from new landlords increased, with 20% more RICS members reporting a rise in activity during the quarter.
According to the RICS, tenant demand has been increased by recent interest rate rises.
These combined with a general feeling of economic uncertainty have resulted in many potential property buyers postponing the purchase of a home.
This view is supported by Paragon, the buy-to-let mortgage lender, which expects to see investors increase the size of their portfolios by five per cent over the course of the next 12 months.
There are indications that strengthening tenant demand within the UK’s private rented sector is helping to push rents upwards and the lender believes that the private rented sector will continue to expand steadily.
In this case, landlords will add to their portfolios in the knowledge that tenant demand is buoyant and rents will continue to rise.