Landlords, property professionals and investors have a bright future ahead, according to Propertymark, which has revealed new data showing that demand for private rental accommodation has risen significantly by 57% over the last four years.
December 2016 An Eye Toward the Future_selected-pagesShawn Miller
The document provides industry outlook perspectives from various housing sector leaders for 2017. They discuss factors that will shape their industries in the coming year. Key points include:
- The single-family rental home market is expected to continue booming in 2017 as demand rises and inventory shrinks, benefiting experienced investors.
- Institutional investors will remain a small minority in the single-family home market but continue supplying properties to fuel the growing rental sector.
- New technologies are emerging to better match vacant rental properties with investors, establishing single-family rentals as a new real estate industry.
- The title and settlement industry will see steady volumes in 2017, with increased adoption of mobile technologies providing better client service.
Baby boomer investors exchanging multifamily ownership for net lease retailWee-Ping Low
Baby boomer investors are exchanging ownership of multifamily properties for net lease retail properties due to record pricing in the multifamily sector and a desire for more passive investments without management responsibilities. The average price per square foot for single-tenant net lease retail properties has surpassed pre-recession highs, reaching $263, while the dollar volume of deals topped $25 billion in 2014. Retirees are taking advantage of 1031 exchanges to transition from multifamily to net lease retail for steady cash flow.
High Mortgage Interest Rate Positive for Landlords.pptxTod Anstee
However, while many will welcome the predictions that interest rates will begin to fall as we progress through the year, there are also indications that professional landlords have seen some unexpected benefits.
Build to rent single family homes have arrived as an institutional investment grade asset. Wall Street has finally recognized that single family rental homes can be packaged to create a diversified portfolio that yields competitively with other similar alternative investments.
Is Multi-family Worth a Look for your Portfolio?Dean Graziosi
More reports, studies and surveys are telling us that demand for rental properties is rising. It’s to be expected when:
• Millennials are beginning to move out of their parents homes, but most can’t buy due to credit or down payment situations.
• Though jobs reports are showing improvement, much of it is due to people dropping out and no longer looking, so renting is still more available to many than buying.
• College graduates aren’t finding the high paying jobs they were expecting in many industries, though some are doing well, such as technology.
• The Boomer generation isn’t always downsizing into another purchased home. Many are choosing to rent and stay more mobile in their retirement.
• There is overall a lack of confidence in home prices and near term appreciation.
This newsletter discusses changes in the US housing market as distressed properties have been absorbed and foreclosures have declined. Housing funds focused on quickly "flipping" distressed homes are struggling as margins have narrowed and inventories declined. The newsletter predicts future housing shortages due to increased demand from new households and a lack of new construction over the past 5 years. It recommends investors allocate funds to residential construction to take advantage of the recovering housing market.
Red CUbe: Property portfolio - Building an Alternative Pension?Proud To Be World
According to The Department of Work and Pensions, pension savings have dropped to its lowest levels in a decade with 38% of people putting money into plans compared with 46%.
There are two main reasons for this:
• Stock market volatility
• Poor returns on most asset classes
Whilst property buy to let experienced a boom period pre credit crunch (2008), it had almost stagnated by 2009/10 as recession took hold, which in turn led to a lack of mortgage products and falling house prices reduced the appetite and confidence of investors.
Having said this, it also must be remembered that property as an asset class has fared far better than any other asset classes with regards to returns, especially as rents during this period have continued to increase.
December 2016 An Eye Toward the Future_selected-pagesShawn Miller
The document provides industry outlook perspectives from various housing sector leaders for 2017. They discuss factors that will shape their industries in the coming year. Key points include:
- The single-family rental home market is expected to continue booming in 2017 as demand rises and inventory shrinks, benefiting experienced investors.
- Institutional investors will remain a small minority in the single-family home market but continue supplying properties to fuel the growing rental sector.
- New technologies are emerging to better match vacant rental properties with investors, establishing single-family rentals as a new real estate industry.
- The title and settlement industry will see steady volumes in 2017, with increased adoption of mobile technologies providing better client service.
Baby boomer investors exchanging multifamily ownership for net lease retailWee-Ping Low
Baby boomer investors are exchanging ownership of multifamily properties for net lease retail properties due to record pricing in the multifamily sector and a desire for more passive investments without management responsibilities. The average price per square foot for single-tenant net lease retail properties has surpassed pre-recession highs, reaching $263, while the dollar volume of deals topped $25 billion in 2014. Retirees are taking advantage of 1031 exchanges to transition from multifamily to net lease retail for steady cash flow.
High Mortgage Interest Rate Positive for Landlords.pptxTod Anstee
However, while many will welcome the predictions that interest rates will begin to fall as we progress through the year, there are also indications that professional landlords have seen some unexpected benefits.
Build to rent single family homes have arrived as an institutional investment grade asset. Wall Street has finally recognized that single family rental homes can be packaged to create a diversified portfolio that yields competitively with other similar alternative investments.
Is Multi-family Worth a Look for your Portfolio?Dean Graziosi
More reports, studies and surveys are telling us that demand for rental properties is rising. It’s to be expected when:
• Millennials are beginning to move out of their parents homes, but most can’t buy due to credit or down payment situations.
• Though jobs reports are showing improvement, much of it is due to people dropping out and no longer looking, so renting is still more available to many than buying.
• College graduates aren’t finding the high paying jobs they were expecting in many industries, though some are doing well, such as technology.
• The Boomer generation isn’t always downsizing into another purchased home. Many are choosing to rent and stay more mobile in their retirement.
• There is overall a lack of confidence in home prices and near term appreciation.
This newsletter discusses changes in the US housing market as distressed properties have been absorbed and foreclosures have declined. Housing funds focused on quickly "flipping" distressed homes are struggling as margins have narrowed and inventories declined. The newsletter predicts future housing shortages due to increased demand from new households and a lack of new construction over the past 5 years. It recommends investors allocate funds to residential construction to take advantage of the recovering housing market.
Red CUbe: Property portfolio - Building an Alternative Pension?Proud To Be World
According to The Department of Work and Pensions, pension savings have dropped to its lowest levels in a decade with 38% of people putting money into plans compared with 46%.
There are two main reasons for this:
• Stock market volatility
• Poor returns on most asset classes
Whilst property buy to let experienced a boom period pre credit crunch (2008), it had almost stagnated by 2009/10 as recession took hold, which in turn led to a lack of mortgage products and falling house prices reduced the appetite and confidence of investors.
Having said this, it also must be remembered that property as an asset class has fared far better than any other asset classes with regards to returns, especially as rents during this period have continued to increase.
The 2015 outlook for commercial real estate and commercial mortgage-backed securities (CMBS) is positive but returns are expected to moderate. Growth will depend more on increases in net operating income rather than declining cap rates. Occupancy rates are projected to remain stable or improve across major property types except multifamily and lodging, which may have peaked. Construction pipelines are growing in some markets, which could impact vacancy levels. Demand trends vary across major and non-major markets. The industrial sector remains resilient due to e-commerce and manufacturing.
Investors are sometimes a hard-put-upon group, but there’s no denying they have a huge effect on our property markets. This month, our offices discuss how investors are operating in their markets, and what an investor slowdown might mean in their service area..............
The survey of members of the Society of Chartered Surveyors Ireland (SCSI) shows that the residential property market improved in 2013, with over 80% of surveyors reporting increased sales activity. Prices rose significantly in Dublin, by around 15.7%, but changes varied regionally. Supply constraints, particularly a lack of family homes, were noted as a challenge. While mortgage finance availability improved somewhat, cash transactions remained common due to issues like negative equity. Surveyors expected moderate further price increases in Dublin in 2014 if supply issues are addressed, but more subdued performance regionally.
This document summarizes real estate market trends in Canada for October 2010. It finds that home sales increased slightly in August compared to the previous month, while home prices remained stable on a year-over-year basis. Inventory levels indicate a balanced market. Mortgage rates increased slightly but remain low historically. The Competition Bureau and CREA reached an agreement that will allow for more consumer choice and pricing flexibility for real estate agents.
The document summarizes the current state of Canada's housing market. It reports that home sales increased slightly in August after declining earlier in the year. Home prices remained stable on a year-over-year basis, with increases seen in most markets. The housing market is considered balanced, with new listings adjusting to demand. Mortgage rates remained low despite recent interest rate hikes by the Bank of Canada.
The document discusses investing in multi-family and commercial real estate properties in the United States. It argues that now is a good time to invest due to historically low interest rates, a shrinking US dollar, and high demand for rental properties. Specifically, it recommends investing in multi-family properties because they provide stable cash flow, appreciation potential, and less risk compared to single family homes. The document also outlines the real estate market cycle and suggests commercial real estate is primed for opportunities in the coming years.
August MLS sales statistics saw significant increases in the Houston housing market. Single-family home sales jumped 20% compared to August 2011, with inventory falling below 5 months for the first time in over 10 years. The average and median home prices also increased year-over-year to their highest levels on record for the month of August in Houston. Rentals of single-family homes and townhouses/condominiums rose as well compared to the previous year.
• The divergence between dwelling values and income growth occurred against a backdrop of lower mortgage rates, and
• Australian’s generally demonstrate a high elasticity of demand for housing, with lower mortgage rates driving high levels of demand contributing to higher housing values.
Pinstat is a new online service that aims to make finding a home easier by combining useful information about neighborhoods with a user's criteria and interests. It allows users to search for their dream home and neighborhood in one convenient location. The document discusses how Pinstat works and the problems it aims to solve related to the current housing search process. It also outlines Pinstat's business model and marketing strategy to target both homeowners and real estate agents.
Buy to Let and Let to Buy Misuse - CML Conference_19 June 2013Tony Moroney
This document discusses buy-to-let and let-to-buy mortgages in the UK. It provides an overview of Navigant Consulting, then discusses the growth of the private rental sector and buy-to-let market in the UK, risks involved for amateur landlords, and lessons that can be learned from the experience in Ireland where many buy-to-let mortgages have fallen into arrears. It concludes that buy-to-let can be a good product for some investors if lenders appropriately assess suitability and risks.
Despite rising multifamily construction starts, the current stock of rental units is struggling to meet demand in some areas. This problem is particularly acute for affordable and workforce housing. High construction costs driven by rising land and material prices are inhibiting new supply, especially of more affordable units. Most new multifamily projects consist of high-end apartments, exacerbating the shortage of affordable rentals. To make projects profitable given high costs, developers have focused on acquiring premium sites and pricing new units at the higher end of the market. This concentration of high-cost units in large cities further squeezes the supply of affordable housing.
- The housing market continues its gradual recovery without government assistance like tax credits, while interest rates hit new lows but have started rising as the economy improves. Consumer confidence and retail sales are up substantially from last year.
- Home sales dipped slightly in October but pending sales rose over 10%, signaling stronger future sales. Inventory fell as prices stabilized near 1% changes. Affordability remains near record highs.
- The government extended conforming loan limits in expensive markets to provide continued support through 2011 as the market strengthens without as much assistance. Overall the document discusses positive economic and housing market trends.
The document discusses rental apartment businesses and provides background information. It covers several topics related to rental businesses including objectives, competition, necessary factors for starting a rental business, and the significance and scope of studies on rental businesses. It also provides definitions of key terms and reviews related literature from both foreign and local sources. The literature discusses factors like investing in rent-stabilized apartments, finding a new rental apartment, landlord and tenant rights, and legal requirements for rental properties.
BARRIERS ENCOUNTERED BY APARTMENT RENTAL BUSINESS in manilaPhamay Nocillado
The document discusses rental apartment businesses and the key considerations for starting one. It covers the objectives of rental businesses, factors that influence profitability like location and amenities, and the importance of an effective business and marketing plan. It also examines the local competition and regulations that must be considered. Setting competitive pricing and understanding tenants' rights and landlords' responsibilities are highlighted as important aspects of managing a successful rental property business.
BARRIERS ENCOUNTERED BY APARTMENT RENTAL BUSINESS in manilaPhamay Nocillado
The document discusses rental apartment businesses and provides background information. It covers several topics related to rental businesses including objectives, competition, necessary factors for starting a rental business, and the significance and scope of studies on rental businesses. It also provides definitions of key terms and discusses related literature from local and foreign sources.
The document discusses rental apartment businesses and provides background information. It covers several topics related to rental businesses including objectives, competition, necessary factors for starting a rental business, and the significance and scope of studies on rental businesses. It also provides definitions of key terms and reviews related literature from both foreign and local sources. The literature discusses factors like investing in rent-stabilized apartments, finding a new rental apartment, landlord and tenant rights, and legal requirements for rental properties.
barriers encountered by apartment rental businessPhamay Nocillado
The document discusses rental apartment businesses and provides background information. It covers several topics related to rental businesses including objectives, competition, necessary factors for starting a rental business, and the significance and scope of studies on rental businesses. It also provides definitions of key terms and reviews related literature from both foreign and local sources. The literature discusses factors like investing in rent-stabilized apartments, finding a new rental apartment, landlord and tenant rights, and legal requirements for rental properties.
The document discusses rental apartment businesses and provides background information. It covers several topics related to rental businesses including objectives, competition, necessary factors for starting a rental business, and the significance and scope of studies on rental businesses. It also provides definitions of key terms and reviews related literature from both foreign and local sources. The literature discusses factors like investing in rent-stabilized apartments, finding a new rental apartment, landlord and tenant rights, and legal requirements for rental properties.
The 2015 outlook for commercial real estate and commercial mortgage-backed securities (CMBS) is positive but returns are expected to moderate. Growth will depend more on increases in net operating income rather than declining cap rates. Occupancy rates are projected to remain stable or improve across major property types except multifamily and lodging, which may have peaked. Construction pipelines are growing in some markets, which could impact vacancy levels. Demand trends vary across major and non-major markets. The industrial sector remains resilient due to e-commerce and manufacturing.
Investors are sometimes a hard-put-upon group, but there’s no denying they have a huge effect on our property markets. This month, our offices discuss how investors are operating in their markets, and what an investor slowdown might mean in their service area..............
The survey of members of the Society of Chartered Surveyors Ireland (SCSI) shows that the residential property market improved in 2013, with over 80% of surveyors reporting increased sales activity. Prices rose significantly in Dublin, by around 15.7%, but changes varied regionally. Supply constraints, particularly a lack of family homes, were noted as a challenge. While mortgage finance availability improved somewhat, cash transactions remained common due to issues like negative equity. Surveyors expected moderate further price increases in Dublin in 2014 if supply issues are addressed, but more subdued performance regionally.
This document summarizes real estate market trends in Canada for October 2010. It finds that home sales increased slightly in August compared to the previous month, while home prices remained stable on a year-over-year basis. Inventory levels indicate a balanced market. Mortgage rates increased slightly but remain low historically. The Competition Bureau and CREA reached an agreement that will allow for more consumer choice and pricing flexibility for real estate agents.
The document summarizes the current state of Canada's housing market. It reports that home sales increased slightly in August after declining earlier in the year. Home prices remained stable on a year-over-year basis, with increases seen in most markets. The housing market is considered balanced, with new listings adjusting to demand. Mortgage rates remained low despite recent interest rate hikes by the Bank of Canada.
The document discusses investing in multi-family and commercial real estate properties in the United States. It argues that now is a good time to invest due to historically low interest rates, a shrinking US dollar, and high demand for rental properties. Specifically, it recommends investing in multi-family properties because they provide stable cash flow, appreciation potential, and less risk compared to single family homes. The document also outlines the real estate market cycle and suggests commercial real estate is primed for opportunities in the coming years.
August MLS sales statistics saw significant increases in the Houston housing market. Single-family home sales jumped 20% compared to August 2011, with inventory falling below 5 months for the first time in over 10 years. The average and median home prices also increased year-over-year to their highest levels on record for the month of August in Houston. Rentals of single-family homes and townhouses/condominiums rose as well compared to the previous year.
• The divergence between dwelling values and income growth occurred against a backdrop of lower mortgage rates, and
• Australian’s generally demonstrate a high elasticity of demand for housing, with lower mortgage rates driving high levels of demand contributing to higher housing values.
Pinstat is a new online service that aims to make finding a home easier by combining useful information about neighborhoods with a user's criteria and interests. It allows users to search for their dream home and neighborhood in one convenient location. The document discusses how Pinstat works and the problems it aims to solve related to the current housing search process. It also outlines Pinstat's business model and marketing strategy to target both homeowners and real estate agents.
Buy to Let and Let to Buy Misuse - CML Conference_19 June 2013Tony Moroney
This document discusses buy-to-let and let-to-buy mortgages in the UK. It provides an overview of Navigant Consulting, then discusses the growth of the private rental sector and buy-to-let market in the UK, risks involved for amateur landlords, and lessons that can be learned from the experience in Ireland where many buy-to-let mortgages have fallen into arrears. It concludes that buy-to-let can be a good product for some investors if lenders appropriately assess suitability and risks.
Despite rising multifamily construction starts, the current stock of rental units is struggling to meet demand in some areas. This problem is particularly acute for affordable and workforce housing. High construction costs driven by rising land and material prices are inhibiting new supply, especially of more affordable units. Most new multifamily projects consist of high-end apartments, exacerbating the shortage of affordable rentals. To make projects profitable given high costs, developers have focused on acquiring premium sites and pricing new units at the higher end of the market. This concentration of high-cost units in large cities further squeezes the supply of affordable housing.
- The housing market continues its gradual recovery without government assistance like tax credits, while interest rates hit new lows but have started rising as the economy improves. Consumer confidence and retail sales are up substantially from last year.
- Home sales dipped slightly in October but pending sales rose over 10%, signaling stronger future sales. Inventory fell as prices stabilized near 1% changes. Affordability remains near record highs.
- The government extended conforming loan limits in expensive markets to provide continued support through 2011 as the market strengthens without as much assistance. Overall the document discusses positive economic and housing market trends.
The document discusses rental apartment businesses and provides background information. It covers several topics related to rental businesses including objectives, competition, necessary factors for starting a rental business, and the significance and scope of studies on rental businesses. It also provides definitions of key terms and reviews related literature from both foreign and local sources. The literature discusses factors like investing in rent-stabilized apartments, finding a new rental apartment, landlord and tenant rights, and legal requirements for rental properties.
BARRIERS ENCOUNTERED BY APARTMENT RENTAL BUSINESS in manilaPhamay Nocillado
The document discusses rental apartment businesses and the key considerations for starting one. It covers the objectives of rental businesses, factors that influence profitability like location and amenities, and the importance of an effective business and marketing plan. It also examines the local competition and regulations that must be considered. Setting competitive pricing and understanding tenants' rights and landlords' responsibilities are highlighted as important aspects of managing a successful rental property business.
BARRIERS ENCOUNTERED BY APARTMENT RENTAL BUSINESS in manilaPhamay Nocillado
The document discusses rental apartment businesses and provides background information. It covers several topics related to rental businesses including objectives, competition, necessary factors for starting a rental business, and the significance and scope of studies on rental businesses. It also provides definitions of key terms and discusses related literature from local and foreign sources.
The document discusses rental apartment businesses and provides background information. It covers several topics related to rental businesses including objectives, competition, necessary factors for starting a rental business, and the significance and scope of studies on rental businesses. It also provides definitions of key terms and reviews related literature from both foreign and local sources. The literature discusses factors like investing in rent-stabilized apartments, finding a new rental apartment, landlord and tenant rights, and legal requirements for rental properties.
barriers encountered by apartment rental businessPhamay Nocillado
The document discusses rental apartment businesses and provides background information. It covers several topics related to rental businesses including objectives, competition, necessary factors for starting a rental business, and the significance and scope of studies on rental businesses. It also provides definitions of key terms and reviews related literature from both foreign and local sources. The literature discusses factors like investing in rent-stabilized apartments, finding a new rental apartment, landlord and tenant rights, and legal requirements for rental properties.
The document discusses rental apartment businesses and provides background information. It covers several topics related to rental businesses including objectives, competition, necessary factors for starting a rental business, and the significance and scope of studies on rental businesses. It also provides definitions of key terms and reviews related literature from both foreign and local sources. The literature discusses factors like investing in rent-stabilized apartments, finding a new rental apartment, landlord and tenant rights, and legal requirements for rental properties.
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The Long Term Growth of the Private Rental Sector as Demand Spikes by 57%.pptx
1. The Long Term Growth of the Private
Rental Sector as Demand Spikes by 57%
2. Landlords, property professionals and investors have a bright future ahead,
according to Property mark, which has revealed new data showing that
demand for private rental accommodation has risen significantly by 57%
over the last four years.
Rental properties, as an inflation-resistant asset, have proven a positive
component of a long-term investment strategy, providing capital
appreciation over time alongside increasing rental yields as more and more
tenants turn to the private sector for quality accommodation.
Further, as some landlords choose to sell, mainly due to reluctance to
adapt to changing regulatory requirements, those rental properties that
remain available have attracted additional price premiums where slow
sector growth places higher demands on capacity.
3. What Are the Prospects for the UK
Property Rental Market?
4. Apprehension is natural, where landlords may have seen mortgage interest
rates increase during the last few months as a result of rising base rates and
persistent inflation – but, over the coming years, those remaining invested
in the sector look set to reap the rewards.
Current price pressures are expected to decline by the second part of this
year. The National Institute of Economic and Social Research indicates a
‘rapid fall’ in inflation as the year progresses.
Forecasts of short-term dips in property values are an aspect of course
correction and a typical part of the economic environment, similar to the
fluctuating price landscape following the pandemic lockdowns – but a
return to gradual, steady appreciation looks highly likely.
5. Indeed, the current volatility may make selling as a knee-jerk reaction an
unwise decision, where properties may not achieve their full potential selling
price. In contrast, higher demand could return a more profitable yield than
seen before.
As property professionals operating across the West Sussex region, we have
seen substantial interest, waiting lists and enquiries from families,
professionals and business owners looking for premium homes within
commuting or travelling distance of commercial areas and schools.
This level of demand has been replicated nationwide, and regarding an
investment property as a longer-term investment may be an excellent
opportunity to achieve an immediate secondary income plus a sizable asset
value.
7. As we’ve touched on, the reason the private rental market is expected to reach 5
million homes within the next two years is that there hasn’t been enough growth in
the sector in terms of the number of properties available to let, to match the pace of
increasing demand.
Social housing is a complex area, but with very low availability, issues with quality and
housing standards, and backlogs of applicants, thousands of tenants now prefer the
assurance and experience of renting from a reputable, private landlord.
The Propertymark survey shows that prospective tenants registering with agents who
are association members reached an average of 147 per branch, coupled with
increasing yields.
Another aspect is that, with high-interest rates, first-time buyers and prospective
owners may not be able to purchase a property until rates fall – further increasing
demand for rental homes over the next 12 to 24 months.
8. What Is the Future of the British
Private Rental Market?
9. A study conducted last year by the Social Market Foundation on behalf of Paragon
Bank shared interesting assessments of how the market will evolve over the next 12
years, looking at prospects and projections for private rentals in 2035.
The independent report supported the expectation that rental demand would
continue to rise and modelled estimates that, in the next few years, as much as half of
all UK households would be privately rented accommodation.
Interestingly, there is a likelihood that the proportion of more mature renters aged 35
to 54 will grow, whereas a larger number of people will expect to remain in private
accommodation in the years ahead, often due to the cost of purchasing a property.
Landlords can incorporate these findings into their plans to decide how best to
manage portfolios and identify new investment opportunities that fit well with the
expectations and demands of the changing tenant demographic.
11. Some of the key takeaways of the report include:
• 81% of tenants renting privately are content with their accommodation and
relationship.
• Mature tenants are increasing as a proportion of renters, with varied priorities
such as stability and proximity to transport connections and shops.
• The growing appetite for longer tenancy agreements and flexible terms that allow
tenants to modify their homes with prior written agreement from the landlord.
The report also notes that the investments made by landlords into the quality of
private rental accommodation have contributed to higher overall standards. Over the
last 15 years, rental properties have become more energy efficient, larger, and
typically of newer construction.
13. During any period of flux, changing legislation or increased cost pressures,
albeit temporary, we tend to see peaks in the number of properties listed for
sale, often a decision made without having the insights that help property
owners make astute, informed judgements.
The rise in demand for quality homes is undeniable. As rental prices increase
to reflect higher property running and management costs, many landlords will
achieve more profitable yields, both now and in the future.
Other statistics and analyses by respected industry experts support the belief
that private rental remains a secure and advantageous investment. Those who
retain properties, expand their portfolios or take strategic advantage of the
anticipated dip in property sale averages later this year will benefit
considerably.
14. Even though inflation and higher consumer costs are widely expected to
plateau and fall towards the end of 2023, demand is not on a similar
downward trajectory. Property investors focused on standards, regulatory
compliance and accommodating the needs of high-quality tenants will be in
a strong position.
For more guidance, predictions and prognoses for the private property
rental market, average rental yields in your area, or advice on managing your
portfolio during uncertainty, please get in touch with the Tod Anstee team
for looking to let professional support from the local property specialists.