Highest Tenant Demand In Nine Year

According to the latest Lettings Survey from the Royal Institution of Chartered Surveyors (RICS), tenant demand emerged at the fastest pace for nine years. The stepping up in demand rose on the back of spiraling economic activity, buoyant employment circumstances and sustained migration from EU accession countries.

According to the survey, 30% more Chartered Surveyors reported an increase than a downfall in tenant lettings, at top from 21%. This is the highest recorded increase in tenant demand, earlier it was at 41%.

The demand of the tenants increased for both flats and houses, with the latter experiencing the major gain with 34% more Chartered Surveyors reporting an increase than a fall in demand for houses. Increasing household incomes are leading to bigger rental demand for larger properties. Affordability conditions continue to avoid would-be buyers from buying a home. However, by taking out tenant loans could prove to be effective in such circumstances. These unsecured loans provide monetary support to the would-be buyers to meet with the cost of buying a property.

Higher investor activity showed a mounting house prices with interest rate rises yet to have a negative impact on landlord demand. Gross yields revealed a second consecutive quarter of downfall, with the pace of decline. The downfall reveals equal decrease for both houses and flats across all locations. Surveyors reported a firm rise in rental levels but expectations of further growth were less than optimistic with a backlog of properties predicted to stop further enhancement. An increasing interest rates probably stopping the tenants to meet their needs, which can be solved by opting for tenant loans. A thorough research of the competitive financial market would allow you to grab these loans at affordable prices.

RICS spokesperson Jeremy Leaf revealed that "With house prices still increasing, the rental market will remain a 'property purgatory' for many would-be-buyers unless accessibility situations enhance significantly. However, tenant demand will continue to rise as long as economic conditions remain strong."

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