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Close up of brass detailing on front door - Dedham - Beresfords Estate agents - Essex

UK to see massive surge in demand for rental properties

In 2011 there were an estimated 4.2 million privately rented homes in Britain, up from just 2.4 million in 2006. When we approach 2021 this figure is expected to have risen to over 7 million!

According to ARLA (Association of Residential Letting Agents), by 2025, one in four households across the UK will be rented to private tenants.

Meeting the growing demand for private renting and adjusting to the changing profile of tenants are perhaps the greatest challenges facing both the housing industry and policymakers at this point in time.

Buying to let is certainly a hot topic at the moment in the media so it’s not surprising that new and experienced investors are looking to explore this venture further. Beresfords report a significant upturn in new buy to let investor activity. Comparing 2012 against 2011, there was a 26% increase in the number of investors actively looking for buy to let properties across our network of offices.

Many of our latest clients have become disillusioned with the poor returns offered from cash in the bank or other more mainstream routes of investment. Instead owning rental property seems more appealing as they not only provide a regular source of income via the monthly rent received but also offer the potential of Capital Growth over the longer term.

However there are still insufficient numbers of new rental properties coming into the market to meet the high demand from tenants. Therefore for those keen to invest there has never been a better time to consider doing so. Borrowing is relatively cheap, demand for rental property strong and good levels of rent are being achieved.

Due to the overwhelming interest from ‘virgin’ landlords looking to venture into this sector of the property market for the very first time, Beresfords have recently set up a dedicated department offering simple, honest and effective advice in terms of how to get started.

Additionally, there is a wide selection of properties which have been pre-selected as suitable buy-to-let investments, thus saving investors significant time trawling through property websites. Here is just a very small selection of those that we feel ‘shape up’

Colchester

Modern two bedroom apartment within walking distance to station. Currently rented out on AST until end of April 2013 at £575pcm. Rent has not been increased for some considerable time so potential to improve annual returns on expiry of current tenancy.

Asking price: £124,995
Projected annual rent: £6,900 to £7,500
Anticipated gross yield: 5.5% to 6%

Romford

A modern one bedroom apartment located in the Town Centre within a 10 minute walk of station. Good internal condition with balcony.

Asking price: £124,950
Projected annual rent: £9,000 (£750pcm)
Anticipated gross yield: 7.2%

Colchester

One bedroom apartment within walking distance to Town Centre and Station. Popular location and strong rental yeld.

Asking price: £72,500
Projected annual rent: £5,940 (495pcm)
Anticipated gross yield: 8.2%

Boreham, Chelmsford

Modern one bedroom apartment already let on AST at £525pcm until June 2013. Quiet location, double glazed and within easy access to the A12. Good annual yield.

Asking price: £92,000
Projected annual rent: £6,300 (£525pcm)
Anticipated gross yield: 6.8%

Witham

Modern two bedroom semi with garage. In good internal condition with UPVC double glazed windows.

Asking price: £148,500
Projected annual rent: £8,700 (£725pcm)
Anticipated gross yield: 5.8%

If you would like further information or need advice on how to become a buy-to-let investor, telephone Beresfords Investment Team on 01245 397497 or via email: investment-team@beresfordsgroup.co.uk

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