Supply and Demand In Renting Out Property:
Although prices for buying property have increased this year, experts are stating that there are still fruitful opportunities for property investors during this time and that the pricing of property will decrease but then rise again by 6.2% by 2027, according to Savills UK (Savills UK).
There are statistics that are now proving that there has been a massive increase in the demand for needing rental properties in the UK.
So, for those of you who are landlords looking to invest in property, now may be the perfect time to find the best landlord insurance available. Get in touch with us here at CIA Landlords for more information.
Due to the prices of properties increasing, people are waiting for the right time to buy, which means that there is a bigger demand for tenancy agreements and leasing out of properties. Additionally, some experts predict that there may be price falls of up to 8%, whilst the demand for rental accommodation is likely to increase alongside rental growth.
Equally, according to the UK housing price index, the average UK house price is estimated at £286, 000 as of May 2023, which is £6,000 higher than 12 months prior to that, but also £7,000 lower than the peak witnessed in September 2022 (“UK House Price Index: May 2023”).
‘The most recent data from the UK House Price Index shows that house prices rose by over £33,000 from 12 months ago in 2021, a growth of 12.6%!’ (Brady), according to RWinvest. For many, this is seen in a negative light, however, for those landlords who invest in buy-to-let property, this is a good thing.
Additionally, “UK house prices increased by 1.9% in the 12 months to May 2023 (provisional estimate), down from a revised 3.2% in April 2023.” (“UK House Price Index: May 2023”) As we can see, the increase in property price has already come down a surmountable size, and so this shows that the property market will be evening out over the next few years.
How do landlords benefit from supply and demand for renting property?
Most people are waiting to invest in property, which means that the vast majority will be looking to enter into leasing agreements instead. As a result of this, your property investment will deem more profitable and reliable.
As mentioned earlier in the blog post, property owners can massively benefit from the unequal supply and demand of owning property. Due to the rise in property prices, if you already own a property or have the financial ability to buy one during this time, you will have endless opportunities in being able to lease out your property.
Make sure that you are fully covered and secure with the perfect coverage for you and your tenants because with leasing out a property comes great responsibility.