Rental Property Demand ‘On The Rise’
Demand for the best property lettings Norwich has to offer, as well as for those across the UK, are climbing, an industry expert has said.
Managing director of the Association of Residential Letting Agents David Cox observed that hikes in house prices in some parts of the country, together with stricter rules where mortgage lending is concerned, are helping to give rental demand a serious boost.
“[This] impacts the cost of renting,” he remarked. “People are willing to pay more to secure their desired property. If house prices continue to rise in 2015, we expect this trend to continue in the rental sector.”
He made these comments in response to new research from the organisation revealing that 27 per cent of member branches saw tenants’ monthly rental costs for the period between December and January increase, compared with just four per cent that registered a drop.
The east of England – including Norwich, Cambridge and Bedford – saw the highest number of landlords pushing rents up, with 35 per cent reporting a rise for the start of the year.
Late last year, Paragon Mortgages revealed that 41 per cent of landlords felt that tenant demand was climbing, with just three per cent of those asked saying it was on the wane. Director of mortgages John Heron said at the time that experts believe that gross buy-to-let lending for 2014 would be approximately £25 billion, representing a good increase over 2013, although there did seem to have been a slow-down in growth throughout the year.