Rightmove’s latest Consumer Rental Forecast shows that the gulf between rental demand, as measured by search activity, and supply, measured by available properties for rent, is at the widest point Rightmove has ever measured.
Search activity keeps setting new records having more than doubled over the last two years whilst available stock for rent is down by nearly 10%.
The rate at which properties are added and removed from the Rightmove site has not materially changed over this period. As a consequence, the upwards rental pressure Rightmove has been reporting since the beginning of 2010 has reached new heights with 63% of tenants forecasting that their rents will be higher still in 12 months’ time. This is up from 53% last quarter, a very large increase in such a short space of time. These stark statistics clearly illustrate the extent of the growing accommodation crisis in Britain, as well as the investment opportunities for landlords to help alleviate it.
Miles Shipside, director of Rightmove comments: “Attention investor landlords: now, more than ever, your country needs you! As well as potentially earning a good return on your investment compared to other asset classes, private landlords can help provide a long-term rented roof over a grateful tenant’s head. While hard-nosed rental investors may not welcome the appearance of too many new landlords if it results in downward pressure on rents, if you invest wisely it seems to be a genuine win-win of good rental yields for landlords and a secure stream of tenants paying a fair return.”