Market Report – Residential Lettings
In recent years the growth in the private rented sector has been attributed to a lack of easily available private mortgages, however, evidence seems to show that we, as a nation, are changing our attitudes to the properties we live in. Renting is now seen by many as a flexible and relatively hassle free way of living which suits modern lifestyles. It allows people to settle in a location where perhaps they couldn’t afford to buy but they enjoy living in. With a growing population of lifetime renters, increasing the amount of good quality, affordable rental accommodation is essential to meet this demand.
Nationally, it is being reported that demand is outstripping supply in the private rented accommodation sector which has had the effect of raising rent levels, although in more rural areas of the country such as Stratford upon Avon, rents tend to hit a ceiling due to the incomes of people working locally.
As a result of this, one area which is recovering ground after a disappointing period, is the ‘Buy-to-Let’ sector, with landlords now spoilt for choice with a record number of mortgage products to choose from. Low mortgage rates have continued making investment attractive, although any landlords looking to invest in the ‘Buy-to-Let’ market should factor in interest rate rises into projected business plans to avoid any unwelcome surprises in the coming years.
By Michael Scott – Associate Partner leading the Residential Lettings Department at Stratford.