Surge in rentals leads to demand outstripping supply
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The property industry is reporting hot competition within the rental sector, with rentals letting quicker than ever and achieving higher prices with demand higher than supply.
With property owners choosing to sell their homes whilst prices are at a high and looking to wait in rented accommodation until the supply of properties coming to the market increases and prices decrease. University students are moving away from their online studies and back into lecture theatres putting student lets back in demand. As offices open back up, the shift back to office working has created a major peak in demand in city centre rentals. Additionally, over the lockdown period many singles and young people had moved back in with family and are now back ready to rent or buy.
The pressure of these factors on the rental market has meant the numbers of applicants for each rental that comes on is high and that rents can be pushed up by competing applicants.
So is now a good time to purchase a property to let or perhaps a holiday home to rent out? For the past two summers we have seen the headlines of Devon & Cornwall at their busiest with UK travellers taking staycations due to travel restrictions. For some visitors this being their first time to experience our beautiful part of the country and who now plan to come back year after year, could a holiday property purchase be a good investment to produce an annual income from a holiday let? Whilst prices are still high in the West Country, there are still opportunities to find properties out there that are reasonably priced and will in turn produce a good yield.
In the last few months my company, 247 Property Auctions, has sold a number of reasonably priced properties via our weekly online auctions suitable to be converted into holiday lets, with a number of Devon and Cornwall properties sold near to beaches and tourism, and central city flats good for the professional and student market. If this is an area you have been thinking of investing in and you have any questions please do not hesitate to make contact.