The latest figures from Propertymark show that tenants are still hungry for homes, even as summer heats up. This means you can expect strong rental income and healthy competition for your properties.

Tenants Still Eager, Buyers Taking a Break

While buyer activity is cooling off as folks head for holidays, tenants are still very much in the game. The number of tenants registering with agents jumped from 97 per month in May to 99 in June. This means that finding good tenants for your properties shouldn’t be a problem.

Rents on the Rise, but It’s Not All Roses

Rents are still rising overall. This means your rental income is likely to keep pace with inflation, protecting your investment. However, it’s important to remember that rent increases are not uniform across the country. Some regions and markets will see bigger increases than others.

What’s Behind the Strong Tenant Market?

Propertymark CEO Nathan Emerson attributes the strong tenant market to a few key factors:

• Pent-up demand: After a long period of uncertainty, renters are back in the market in force.
• Limited supply: There just aren’t enough rental properties available to meet the demand, pushing rents higher.
• A base rate cut: While the rate cut might cool the buyer’s market, it’s likely to make borrowing cheaper for tenants, potentially pushing up demand even more.

Looking Ahead – Summer Slowdown, But Long-Term Optimism

While the summer months might see a slight dip in activity as people take time off, Propertymark expects things to pick up again towards the end of the summer. The strong tenant demand, coupled with a potential base rate cut, suggests a good outlook for landlords in the months ahead.

Propertymark is optimistic about the overall market, both for lettings and sales. They are keen to work with the new government to improve the housing system, which could lead to even more opportunities for landlords in the future.