View more on these topics

Rental recovery continues but tenants face the squeeze says Savills

Landlords are seeing a rise in rents over the next two years but this means tenants could face affordability squeeze according to Savills reseidential research.

The strength of house price growth over recent years has led to a reduction in first time buyers being able to buy thus boosting the demand for rental properties.

New rental stock entering the market has also grown with the number of BTL mortgages increasing four-fold between 2001 and 2003 according to Savills.

But 2004 saw a significant slowdown in BTL lending, explained partly by weaker house prices and lower yields.

Savills head of residential research Richard Donnell says: “With demand expected to remain strong, we see the pick-up in rental values continuing over the medium term. In some under-supplied areas of the market, rental growth could in fact be quite strong in the short term.”

“The most successful investors strike a careful balance between buying stock that appeals to tenants but which will also prove attractive to those potential buyers who in turn will ultimately be responsible for driving sales values. Getting these two components right will help boost total returns.”

Recommended

FCSC sets out bond miselling figures

Defunct companies Berry Birch & Noble Financial Services, David Aaron Partnership and RJ Temple generated the most successful claims for precipice bond misselling, according to recent figures from the Financial Services Compensation Scheme.

Schroders follows the orient

The Schroder oriental income trust is an investment trust designed to take advantage of dividend growth in the Asia Pacific region.

Fixed expressions

Almost three year’s ago, Britannia Building Society launched the best fixed-rate mortgage … ever.

’26th state’ could be a haven for IFAs

The European Commission could exempt IFAs from EU single-market regulation by the creation of a “26th EU state” for firms wanting to trade across borders. The proposal, which is outlined in an EC Green Paper on Financial Services Policy, is designed to offer a lifeline to firms which are keen to escape costly EU single-market […]

Phone - thumbnail

Pension Wise — now taking calls…

Those with decent-length memories will recall that in the 2014 Budget statement George Osborne announced the new (and entirely unexpected) pension freedoms. The new rules come fully into force in less than two weeks.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment