A perfect storm within the rental property market is representing a big opportunity for property investors.
LONDON, October 24th 2022 – That’s according to the owner (Jon Graham) of the West Yorkshire based Estate Agents, Dwell Leeds.
Zoopla’s Q3 Rental Market Report shows the average annual rent has gone up by 12.3% year on year, as of September.
Meanwhile, the report also highlights a 46% fall in the number of properties available to rent in the UK versus the 5-year average.
Director of Dwell, Jon Graham, says – “In my 18 years in the industry, I’ve never seen such a stark lack of properties available to rent and such high levels of demand from tenants.”
“In the Leeds area, we’ve seen a 11% jump in rents in the past year alone.”
“It very much looks like this trend is set to continue, and although it’s a very difficult time for home-movers in the rental market, this represents a real opportunity for investors with a long-term outlook.”
“Particularly as we now see house prices stabilising and with 13% more properties on the market now compared to 2 months ago”.
Last week, building society Nationwide said the average house price in the UK did not change between August and September, ending more than a year of uninterrupted growth.
A report in the Financial Times highlighted this with Nationwide’s Chief Economist Robert Gardner saying “further signs of a slowdown had emerged over the past month”.
Similar signs of a fall in house prices were predicted last week by experts in the Guardian, with some suggesting a house price fall of around 10% over the next year, with others, including Credit Suisse, suggesting up to 15%.
All indications are that it’s now leaning to becoming a buyer’s market, particularly those with a long-term view to their investments.