Investment in residential rental properties in UK rises significantly

Among the Most Profitable Businesses in UK

Property business is said to be amongst the most profitable business across the globe. This trend has also been observed in UK also as the prices of the properties and rents have been steadily rising through the time since last several years. 

The prices of the properties had their direct impact on the rents and other related services for the properties making things better for the property dealers and renters who had their incomes increased during this time. The renting business of properties have been amongst the most beneficial in the recent times especially during the last three months investors have significantly purchased a good number of properties for the purpose of renting out.

Trend of Investment has increased in Letting

The prime associations of the Letting agents in Leeds ARLA also has confirmed this matter and has declared that majority of the landlords have been investing in the properties for the purpose of renting them out. The amount of such property owners has increased from 30% to 39% in the last three months. The number of Landlords selling their properties has also reduced during this time span and it has reduced to 13% from 14%. With the same increase, there is a growing perception that the achievable rent rates have also raised slightly from 34.4% to 34.7%. The increase in rents have made it possible for the landlords to invest on their properties and bring them back to better condition increasing their capital value by 0.5% over the last three months. This particular increase is only subject to the houses.

Flats Are Gaining More Importance as Compare to Regular Houses

Flats have gained much more as compared to regular houses and it amounts to 3.8%. The tenants have the trend of continuing with the same property in the main areas of UK and this trend has increased to 19.8% from 19.7% during last three months. The landlords have also gained strength and this has helped them rise from the losses and bad debts and during the last three months they have increased from 36% to 39%.

The trends have also affected upon the landlords as they have been struggling to get the payments from the tenants and evacuating their place from the tenants. This amount has decreased to 36% from 39%. The records also show that there have been much problems too where the landlords had to receive the rent from tenants but has not been able to get the complete amount. The amount of such landlords has decreased to 49% from 50%. According to ARLA members the number of tenants that have been seeking for the references to make sure their payments would be safe and they will not be handing over their amounts to the wrong person while getting the property on rent has reduced from 10% to 9% during the last three months.