With all the focus on the property prices and the related mortgages, its worth noting that the flipside of the finance for property investors, (namely the rental market) is also in a state of flux. Thats good flux, by the way. Following the property correction, we have seen a gradual decline in rental demand which has depressed prices, in turn making it tougher for the lenders rental calculations to stack up.
So it is with some good cheer that we are seeing the (gradual) reverse of this in many reports.
Ian Potter, operations manager at the landlords association (ARLA), says:
"This shift in the balance of supply and demand is extremely significant for the private rented sector. It gives further evidence to suggest that the property market as a whole is getting back on its feet.
"This shift also indicates that confidence is rising among prospective tenants; it seems that people who delayed setting up home 12 months ago now feel secure enough to proceed.
Equally, those who historically have shared a rental property seem happy to set out independently.
Promising indeed, and this bodes well for a virtuous circle of increasing demand and extra supply that will follow, as more buy to let properties are purchased and successfully let out.
And, as if by magic, we have a new HMO product below that might just be able to help university towns and cities have seen the biggest increase.
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