Private rental sector growing, but you still need to do your homework
The private rented sector is growing with reports of an annual increase of 4% on rents and with 6 tenants chasing every available property across the country. So it was not surprising to also read this month that the average deposit in England and Wales has increased by 34% since the launch of tenancy deposit protection in 2007, according to figures released by My|Deposits.
This growth in the sector is likely to be a long term trend as it was reported this month that it would take the average person as long as 22 years to save up for a deposit according to CML figures. Many people may therefore resign to the fact that renting is going to be a long term option for them rather than a short term solution.
With such positivity in the sector in terms of growth it becomes all the more vital for landlords to do their research before investing. However according to research conducted by Platinum Property Partners many buy-to-let investors carry out no or little research before making property purchases. Steven Bolton from Platinum Property Partners states that ” research and advice is essential to help pinpoint the right type of property and identify the right locations to maximise income”, with even as small an increase as 1% they could see a significant increase in their investment.