Are You Looking for a Suitable Property to Buy? Things To Know
Having your property can always create an additional source of income. However, knowing whether it is the right time to invest in a property is also quite important. If the property price is falling and rentals are rising, investing in any property can be the most opportune moment.
It is high time that you consult a professional company like Landmark Estates to discuss the property market situation and its availability. Also, knowing where to choose the best location in the UK is essential.
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Market data is encouraging
Market data indicates a significant 9.2% surge in average rents in Birmingham over the past year, underscoring the rapid price growth in the second city of the UK market.
The notable increase can be attributed to various factors such as:
- The resounding success of the Commonwealth Games
- The ongoing construction of HS2 at Curzon Street
- Substantial inward investment.
These elements collectively contribute to a heightened demand for rental properties, positioning Birmingham as one of the prime locations for property investment in the UK. The city’s escalating property prices are also influenced by a few additional factors, as mentioned below, which further contribute to its status as a top choice for buy-to-let opportunities:
- An increasing population estimated to hit 1.24 million by 2030
- Due to Birmingham’s affordability, young professionals who are leaving London are requesting to rent.
- A 41% graduation retention rate attracts new millennial professionals looking for rental housing.
Soaring rental demand
Landlords who set competitive rental prices are experiencing high demand, with experts noting a queue of prospective tenants. Data reveals an average of 10 applicants per property, and in certain instances, viewing requests have to be restricted due to overwhelming interest.
A notable example is a Falmouth family home, advertised by a property company, which garnered an astounding 150 inquiries within the initial 24 hours.
So, by looking at all these new developments in the property market, we can safely say that:
- The demand for well-priced rental properties is on the rise.
- Landlords must tactfully decide their rate, as the market is now very competitive.
Why is the demand increasing?
According to a few of the property companies, the demand for rental homes has increased by 50%, which was never seen in the last 5 years.
The reason for this high demand is:
- The robust labor markets
- Record immigration
- An influx of overseas students.
But since 2016, the supply of rental properties has only grown by 1%, highlighting a notable discrepancy between supply and demand in the market.
A most opportune time to invest
If you have sufficient cash, the current situation is the most appropriate moment to put your money on certain properties in places like north London. Surprisingly, during the last two years in this area, rents have increased by 25%, and demand for tenants is high.
Therefore, a long-term investment approach is crucial, with investors needing the financial stability to cover mortgage payments for at least the next five years, adapting to the changing landscape of property investment.