The current demand for residential property investments is high. Also, average property prices have held steady since July 2022. The demand is not just from first-time buyers, but from the UK and overseas investors as well.
This is worrying as the available stock of new build properties is dwindling. Additionally, this demand has affected the private rented sector (PRS) somewhat. Moreover, tenancies are increasing month-on-month.
High Demand For Residential Property Investments Affects Private Rented Sector
The high demand for residential property investments has a significant impact on the private rented sector.
The average rental prices are on the rise, and more investors are finding success in the market. This is good news for those who have weathered through the last few hectic months, as rental income is increasing.
This sustained high demand for residential property investments is coming from a variety of sources. First-time buyers account for a percentage of those investing in property. There is also a growing interest from overseas property investors. But the bulk of the investments come from UK and expat property investors.
Increase Puts Pressure On Developers To Meet Demand
This increased demand makes it more challenging for estate agents. There is pressure to find properties that meet the expectations of property investors. In particular, new build properties are in high demand and they are becoming increasingly scarce.
The pressure is now on developers. They need to complete developments to ease the pressure on demand. And in the long run, having new build properties will help the private rented sector fulfil the demand for lettings, as well.
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How Long Will This High Demand For Property Investments Last?
It remains to be seen how long this high demand for property investments will last. Some experts are predicting that it could continue until late 2022 or even early 2023.
So far, there has been no sign that investor confidence is waning. If anything, it seems to be getting stronger as more people become aware of the potential profits to be made in the housing market.
Those who joined the private rented sector during this period or earlier are seeing healthy returns on their investment. It is still possible to make a profit in the current market if you are shrewd and quick to react to changing circumstances.
The current housing market offers excellent opportunities for property investors. Those who are prepared to act quickly and decisively stand to make a lot of money in the coming months and years.
Book a chat or call our team today on 02079236100 and learn why our property investment plan centres around off-plan and new build property. We can help you pick the strategy that is right for you and your current situation. You will also get education and support to help you gain the confidence to invest with certainty in areas with good solid fundamentals.