The buy-to-let market is looking healthy, with more properties being let than ever before! Despite some worries about future government regulations, the latest figures show strong growth in the rental sector.
More Landlords Jumping Onboard
Lettings agency giant Connells, one of the biggest names in the game, says the number of landlords listing their properties increased by 6% in the second quarter of 2024. The number of new listings in June was the highest since July 2020.
Renters Still Keen to Secure a Place
While there’s been a slight drop in the number of tenants looking for homes, it’s still a strong market. With more properties available and steady demand, the number of tenancies agreed in the second quarter of 2024 actually went up by 3% compared to the same time last year. This means landlords are finding tenants quickly and filling their properties.
Rents Still Climbing, But At a Slower Pace
The average rent across the UK is now £1,464 per month, which is a 6% increase from the same time last year. However, the growth rate of rents is slowing down as more properties enter the market and competition between tenants eases.
Regional Variations in Rent Growth
While rents are rising across the UK, there are some differences across regions. In the South East and Midlands, rents actually fell slightly in June. But in Scotland, northern England, and the East, rents continued to rise. This means there are still opportunities for investors to find good rental yields in different areas.
Experts Remain Optimistic
Connells are happy with the overall picture. They say that despite some uncertainty about future government policies, investor confidence in the buy-to-let market is increasing. This is great news for landlords and property investors, and suggests the sector is in a strong position.
Why is Buy-to-Let Still a Good Investment?
Connells believe that the private rented sector continues to offer solid returns for investors. They point out that big investors and institutions are still entering the market, seeing buy-to-let as a long-term strategy for stable returns. This shows that even with the occasional dips and bumps in the road, buy-to-let remains a popular and reliable investment choice for many.