Are you looking to invest in the UK’s booming housing market? You might be interested in what’s happening in York.
The number of rental properties available in York has plummeted, despite a huge number of people wanting to rent. This means a good, solid rental property could be a goldmine.
The latest figures from the Office for National Statistics (ONS) show that only 1,451 rental properties came onto the market in the first six months of this year. That’s 530 fewer than the last six months of 2023.
At the same time, the number of homes being put up for sale has increased, with 2,357 new properties on the market in the first half of this year compared to 1,958 in the second half of 2023.
Rents Remain High
With fewer homes available, rents in York are sky high. In April 2023, rents increased by a massive 13%, and there’s no sign of that slowing down.
Why is this happening? Sam Carroll, head of residential lettings at York estate agent, Naish, explains that many landlords are switching to serviced lets or selling up because high interest rates are eating into their profits.
A Tenant’s Market
Despite the shortage of rental properties, demand from potential tenants is booming.
“York is a very desirable location for many,” says Sam. “Many first-time buyers want to rent in a particular area before buying, and lots of NHS staff and university students are looking to rent in the city.”
With so many people wanting to rent, finding a property is tough. Many potential tenants end up disappointed as they miss out on properties or struggle to get a viewing.
The Benefits of Long-Term Lets
Sam advises landlords that choosing to rent their properties out on a longer-term basis can offer a more reliable and consistent income stream. This helps with financial planning because you can rely on a regular monthly income. It also reduces the ups and downs of short-term lets, which can come with higher costs.
The Future of the York Property Market
With the UK election approaching, the political landscape is uncertain. However, there are steps you can take to protect your investments.
Sam urges landlords to stay informed about political changes and to consider hiring a professional property manager to ensure compliance with new regulations.
The Big Picture
While house prices are falling slightly due to high interest rates, they are still significantly higher than they were in previous years. This means that many people are struggling to get on the property ladder, pushing up demand for rental properties, and forcing landlords to increase rents.
With this kind of market in York, a good rental property could be a smart investment.