Bidders Flock to Auction Houses As Tenant Numbers Soar - 24/08/10
There are now 5.5 tenants competing for every home whilst the number of people looking to rent out their home has fallen by six per cent.* Experts say this demand has sparked a rise in buy-to-let investors looking to buy at auction.
At UK auctions, residential lots raised £212,568,849 in May alone, up 29.3 per cent on May 2009**.
In June, the Council of Mortgage Lenders reported a 15 per cent increase in mortgage lending to an estimated £13.1bn showing investors are becoming increasingly confident about buying property.
Chris Baguley, director of lending specialist Auction Finance Limited said:
"We're not yet at the peak season for rentals and demand is at an all time high. Now is a good time for buy-to-let investors to buy good properties as the yields achievable remain strong and with demand still growing, rent is likely to rise, too. With the election behind us, the market is beginning to settle and confidence is returning.
"As the housing shortage continues, there are real opportunities for investors to take advantage of market conditions. The auction room is the perfect place to do this as properties typically go for between 10 and 20 per cent below market rate."
The government's National Housing and Planning Advisory Unit estimates between 238,000 and 290,000 new homes are needed per year to meet housing needs.
* Research from Countrywide, the UK's largest letting agent** Figures taken from auction information site, Essential Information Group.
