The rise in demand has seen rental prices increase as properties to let rose by 18 per cent in July on an annual basis and seven per cent since June across the country. A tenant in the East Midlands pays on average £704 a month to rent a property. Even though demand for properties has increased so dramatically in the past year, supply has fallen by 19 per cent.
Despite the increasing demand for rental properties, PWR Lettings is still renting properties on average within seven days, Simon Perkins, partner at PWR said: “We are finding similar trends to the national trend here in Nottingham. At PWR Lettings demand is strong for rental properties and we are renting properties here on average within seven days. We let over 20 properties every week across Nottinghamshire and North East Derbyshire.”
Strength in the rental market usually signifies that there is less desire to purchase properties. It appears however that demand to buy is still strong but there is a lack of rental supply that is pushing up the prices of rental properties.
Many landlords are applying for more buy-to-let mortgages as demand for rental properties is increasing radically with applications rising 20 per cent year on year.
The recent relaxation of pension rules has encouraged people in Nottingham and across the UK, to invest heavily into property to earn money through retirement. Due to this and the continuing applications for buy-to-let properties, which have increased three per cent since June, the supply of rental properties will increase reducing the shortage.
PWR manage in excess of 1300 properties for their clients and are specialists in acquisition, letting and management, for more information or to get the most out of your investment contact PWR Lettings.