Latest blog from our Residential Conveyancing team.
The ‘Buy to let’ Britain report compiled by Kent Reliance indicates that the total value of property in the private rented sector has now reached £930.7 billion.
The report suggests that resurgent property prices have been a key driver in the increasing value of the private rented sector, but long term growth has been underpinned by very strong demand from tenants wanting rented homes. The report also suggests that a serious shortfall in house building and regulations requiring developers to build social housing are both pushing up the price of would-be starter homes.
While there are signs that the rapid house price growth may be slowing, Kent Reliance’s analysis of current market trends suggests the private rental sector will break through the £1 trillion barrier in the second quarter of 2015.
Currently, London accounts for 41% of the sector’s value at £377.3 billion, while the South East is the next biggest component with its value of £137 billion or 15%.
The disproportionate size of the private rental sector by tenure inside London’s population is a major factor in the pace of growth in the overall sector’s value. Rapid London house price growth has a much bigger effect on the private rented sector than it does in the wider housing market.
Overall the amount of rent tenants are paying each month across the UK has increased. However, the increase in rents themselves is slowing. While total rent paid across the private rental sector has risen 4.4% in the last year, the average property’s rent has only risen by 1.1%. The average rent in Britain stands at £813 per month currently, up from £804 a year ago.
If you are looking to purchase a property for buy to let purposes or have a buy to let enquiry, then please get in touch with one of our experienced and specialist residential property solicitors in our Residential Conveyancing Department. We are able to deal with all forms of residential buy to let conveyancing transaction efficiently and tailored to your needs.
At Myerson, we offer a prestige conveyancing service, providing the highest quality legal advice for discerning clients. Myerson are also accredited members of the Law Society Conveyancing Quality Scheme – the mark of excellence in the residential conveyancing process.
For further information on our prestige conveyancing services, please contact a member of our Residential Conveyancing team.