Rents Are Rising & Rental Demand Is Stronger Than Ever

Over the past few years, increased immigration from Eastern Europe has been a much heated talking point and with the population to top 60 million for the first time more homes be it rented or owned will have to be found. Whatever the overall views on immigration, this has had a positive knock on effect to the buy to let market with many immigrants looking to rent properties before looking to buy.

The extra 1.1 million foreign nationals working here place additional pressure on our finite housing stock and particularly on the private rented sector. This factor alone represents an additional 3.5% demand for rented property.

In a statement today financial brokers Moneygate said; that, far from facing doom and gloom because of the housing downturn, buy-to-let in Britain was well placed to do well. The company cited lower repossession rates, plus the higher income and broad asset base of experienced landlords as reasons for lenders to retain more confidence in buy-to-let investors than in ordinary residential mortgage seekers.
.
In addition, the firm added, there was "strong evidence" that rents were rising "sharply" and would continue to do so as the situation unfolded.

Thus, the firm concluded: "Despite predictions of doom and gloom in the property market, the buy-to-let market looks set to continue bucking the trend with predictions of up to 15 per cent growth over the next year."

With the above in mind, many property investors and landlords will have plenty to be optimistic about.