Why is there unprecedented high rental demand?

Posted: 12/10/2021

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As recently reported on both here and in the local press and media, rental supply has been significantly out-stripping demand. For a single Belfast rental, we can now expect up to 100 enquiries and if you don't believe us just have a look at the view counter on a PropertyPal advert - it's usually above 1000 very quickly. Supply is not meeting demand but what is behind this? Well, there are as always, many factors, such as the return to normality following lockdown but the government is behind some of it. Over the last decade they have been trying to drive landlords out of the private rental sector. The motive might well have its moral merits - freeing up more property for first time buyers but the government were warned (and we did previously predict) about a rental housing shortage. Many landlords have and are selling up, "taxed out" by the government. But we still have a significant population who cannot or do not want to buy a home and need to rent. For those that do want to buy, again as predicted, increasing rents forced up by the supply-demand imbalance means that they have less to save for a deposit. For landlords however, it means that they can now achieve higher rents and probably more importantly, better quality tenants. As agents we routinely have a large choice of prospective tenants to choose from for any one property. Therefore, we can choose the best tenant for that landlord. Higher returns on rental properties along with historically low interest rates are unsurprisingly attracting many new landlords into the market. Many simply want a decent investment vehicle to help their retirement fund and who can blame them when banks are paying practically nothing in savings? So more properties being snapped up by investors may help re-balance the rental imbalance but it will do the opposite of the government's policy intentions and make it harder for first time buyers to get on the property ladder. If you are interested in becoming a landlord, contact us for free and impartial advice. If you are an existing landlord who has problems from bad tenants who circumvent agents, get in touch as we can help you find better tenants. Call 028 9045 6162 - email office@key-one.co.uk. 

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