Record Rental Shortage to Rocket Bidding - 07/01/11
Auction rooms are predicting a surge of bidders keen to expand their buy-to-let portfolios due to the national shortage of rental properties.
The Association of Residential Letting Agents (ARLA) reported this week, more people than ever are trying to find properties to rent in the UK.
Auction Finance Limited which provides fast funding for auction purchases has noticed increased interest in auction rooms from buy-to-let investors.
A Upad survey of residential landlords in December revealed 60 per cent of landlords are far more confident about the rental marketplace than they were during the previous month.*
Chris Baguley, Director at specialist lender Auction Finance Limited, said:
"With the marked decline in housing supply there has never been a better time to invest in buy-to-let property. Achievable yields remain strong and with demand greater than ever, rent is expected to go through the roof within the next 12 months.
"The buy-to-let market is gaining strength by the day and is the perfect option for investors while interest rates and prices are low. Canny investors are snapping up properties now before prices rise and are turning to the auction rooms because they know they can grab a bargain."
William Jordan, Managing Director of North West residential lettings agency Jordan's, says the growing demand and shrinking supply is becoming a problem:
"More well-qualified, responsible potential tenants are pouring through our doors than we've seen in our 21 years of trading - but we don't have enough properties to offer them.
"The recession has thrown up some surprising changes to our received wisdom that house ownership is the best financial option. More and more people are thinking about renting.
"The issue is for a healthy rental market, lots of small landlords need to be buying-up houses to put on the market, and more people renting, need to vacate and buy.
"At Jordan's we have large numbers of people who want to rent. Demand is growing and supply is shrinking, existing and potential landlords should be jumping on this opportunity."
