Rental market is currently strong

Permalink: Rental market is currently strong
by Kay Murchie

According to Hamptons International, landlords with buy-to-let mortgages are reaping the rewards as the rental market is incredibly strong. Tenants are renewing and new applicants are moving with the start of the school year. Furthermore, graduates are moving to the capital and other cities to start their first job and looking to rent.

Hamptons added that the total value of lettings renewals has increased by 40% month-on-month in September. The property firm added that it has seen many landlords request 20% more in renewals and with tenants signing contracts for at least 2 years in many instances, the sector appears strong.

Hamptons also noted that investors with large portfolios are benefiting from current market conditions, with many even considering putting their property back on the market to achieve even higher rental levels.

A member of the Bank of England’s Monetary Policy Committee remarked that the housing market is relatively robust in spite of worries over lending.

Contradictory the above, landlord.co.uk, the property website, said that buy-to-let landlords could spark a house price crash as a growing number are selling their properties following worries of price falls and rising interest rates. The property website, which has 14,000 registered landlord users, added that many are panic-selling as they are expecting a dreary winter in the property market.