LRG says this is supported by recent market assessment which shows the number of new prospective tenants registered rose from 2022 figures
Leaders Romans Group claims the gloomy mood which many say surrounds the private rental sector is overstated.
It has surveyed its landlord clients – who represent just 380 properties – and says 75% identify ‘A shortage of rental properties in my area’ as a prime opportunity, marking a significant rise from 29% when last canvassed in February.
Likewise, 62% recognise ‘Increased rental yields’ as a real prospect, an increase from 44% in the earlier survey.
LRG says this is supported by recent market assessment which shows the number of new prospective tenants registered rose from 2022 figures.
August 2023 had an average of 197 prospective tenants registering compared to 149 in July last year. Figures in August this year were nearly 32% higher YoY which suggests robust demand for rental properties, enabling landlords to capitalise on higher rental yields.
Moreover, LRG says landlords are hopeful about the continued steady increase in house prices: 40% expect ‘House price increases from 2024 onwards’ – a notable rise from 17% in the first quarter survey.
While recognising the challenges posed by various factors – including the Renters Reform Bill and mortgage rates – LRG, which represents more than 42,000 landlords, says it “remains steadfast in its belief that several essential components for a positive market remain intact.”
The agency expects that interest rates will drop in the lead-up to the 2024 general election and has doubts about the progression of the Renters Reform Bill.
Allison Thompson, LRG’s national lettings managing director, says: Demand for rental properties has seen a 32% rise since last year, with rental prices continuing to increase. This demonstrates that the return on investment for landlords remains positive. Those landlords we have recently surveyed remain hopeful about the opportunities available in the coming year. LRG’s resounding message to landlords is to remain committed on the basis that property investment is a reliable and attractive long-term option.
Thompson said: Moreover, because of high levels of demand for rental properties and a slow-down in property sales, we are increasingly providing lettings advice to homeowners who need to move but are struggling to sell or do not want to reduce their house price. Across the country, across different property types and locations many people in this position are taking advantage of unparalleled demand in the lettings sector.