The rental property market is booming according to recent figures, as would-be first time buyers delay getting on the property ladder because of worries over the economy, or as a result of being unable to secure a mortgage in this uncertain economic climate.
With first time buyers choosing to put off buying their first home, many are staying on in rented accommodation which means the market for rentals in the UK is currently enjoying a healthy boost.
The average cost of a two bed rental property has risen by 7.6% over the last year with the average cost of monthly rent in the UK standing at £700 although in cities such as London this figure is significantly higher at £1,000 a month, in Dublin it’s slightly less £910 a calendar month, and £769 a month in Edinburgh.
In addition to the increase in the rental prices, many tenants are choosing to stay on in their rental property and extending their tenancy agreement which means there’s less movement in rental stock so fewer properties are becoming available to rent so there’s less choice for potential tenants.
The turnaround in properties becoming available and securing a new tenant is also at an all time high, with a quarter of rental homes being let with the month, although the average is 44 days.
In the short term, the demand for rental property and the increased prices look set to remain unchanged, which spells very good news for landlords throughout the country.