The rental market took a slight hit when the government announced that the UK would go into a full lockdown back in March 2020, however, since May of last year the rental market has been booming. The supply, however, is lagging behind the demand, leaving a large gap for rental property investment.
The property giants Right Move announced that on May 27th 2020 it experienced its busiest day on record in terms of website traffic, showing that people are using their time in lockdown to think about rental property. Demand in the sector over the past 12 months hasn’t fallen as low as it did for people looking to buy a property.
You may ask why there has been a surge since the start of the COVID-19 pandemic? Several factors could influence the sudden demand for rental property. One is that in the last two lockdowns you weren’t able to go and view properties and move house, whereas in the very first lockdown it was against COVID protocols. Another possible factor is that in the private rented sector, there is less paperwork and logistics compared to the housing sales, therefore the process can happen much quicker.
In these uncertain times for some sectors e.g., the NHS, their workers have had to move house because of the demand for health care staff in certain areas of the UK. A good example of this is when the Nightingale Hospital was built last year, a lot of health care staff were drafted in, meaning that they also needed to move house. Rental housing was the perfect choice for these workers.
Many people have enjoyed lockdown as they have got closer to their other half and family, however, the lockdown hasn’t been good for others meaning that a lot of relationships haven’t survived. This may have had some impact on the number of people looking for rental housing.
The rental market in the UK has been growing for the last 20 years. Many people’s attitudes have changed towards rental accommodation, together with financial issues, it has been a popular choice for a lot of people.
Where to Invest in the UK?
For Property investors in the UK looking into the housing market, rental property is most definitely something to look into, purely down to the high demand for rental accommodation in the current market. As the demand for rental housing is high, void periods for the property tend to be much lower. This reduces the chances of your rental property sitting empty and has a huge impact on your return on investment. Right Move has suggested that West Midlands and the East Midlands are the 2nd and 3rd best places to invest in rental property in the UK. There has never been a better time to invest in rental property in the West Midlands.
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Looking to invest in a rental property or looking for suitable rental accommodation? Our professional team are on hand to help you find the perfect property for you. Get in touch by phone 0121 428 1000 or by filling our contact form.