It’s no surprise then, that with rental growth hitting 4.1% in December 2020 – the highest level in four and a half years, buy to let holding companies were the second most common type of company set up in 2020 (Hampton’s International).
Driven in part by a reduction in the number of rental homes available on the market, the property boom at the end of 2020 and the final Brexit transition deal delivering some certainty to the market earlier this year – the UK Buy-to-let property market has a lot of potential.
Growth of the UK Rental Sector
The UK rental market continues to be one of the fastest growing sectors in the country and despite the pandemic, demand for rental property doesn’t appear to be slowing down. In fact, lockdown has made many of us reconnect with our homes and re-evaluate where and how we want to live.
And whilst the Stamp Duty holiday definitely unlocked a generation of pent-up demand from home movers, the pandemic also fuelled a wave of lettings as renters relocating from urban areas, to homes with access to greenery and great home working space.
What are tenants looking for in 2021?
As we start adjusting to life out of lockdown, it seems the aftereffects of the last 12 months will long have an influence on what we value and need from our home environment. Priorities have changed for many of us following the pandemic, and this is no different for tenants.
- Broadband Speed
School closures and rapid increase in the number of people working from home, it’s no surprise that broadband speed is fast becoming a top priority for tenants in 2021. In fact, Fine & Country reported that “46 per cent of those searching for a new home …deemed broadband speed to be more important now than before the pandemic.”
- Dedicated home working space or office
Remote working and Working From Home is certainly a trend that will stay beyond the restrictions, with an increasing number of employers vowing to keep working from home as part of on-going company culture.
- Outdoor space
Unsurprisingly outdoor space has become a top priority for tenants looking to relocate. According to a recent survey of property professionals by the Royal Institute of Chartered Surveyors (RICS) 81% of respondents highlighted that outdoor spaces such as balconies and communal gardens will demand a higher rental premium, while 74% predict an increase in demand for properties near green areas such as parks.
Investing Buy to Let Property
Buy to let property remains a popular investment for many, and for those investors looking for property investments in Nottinghamshire, the market looks promising. The Office for National Statistics revealed that the East Midlands saw the second largest annual rental price increase in the 12 months from February 2021, at 2.2%.
However, if you’re looking to build your rental property portfolio or you’re considering developing property and selling for profit – getting the right advice from the start is crucial. Expert, advice from professionals who know the market and understand your goals and circumstances, is the foundation to building a successful investment. To find out how to make the most out of your property investments contact our brokers for a free consultation today.