Amongst all the doom and gloom with the coronavirus pandemic there is finally some good news for property investors. Rightmove announced recently that Wednesday 27th May 2020 was the busiest day for their website on record.
Their website had over 6 million visitors and this represented an 18% increase for the same day in 2019. After analyzing their data, Rightmove found that 28% of people that were not interested in moving prior to the lockdown were now actively looking.
This is good news for the UK property sales market. But Rightmove pointed out that there was a much more significant recovery in the private rental market. It is true to say that the private rental sector demand did not drop as much as those that were looking to purchase a property.
Demand for Lettings up 22%
Rightmove said that they have experienced a significant increase in the demand for lettings up 22% from the same time in 2019. These figures show that the private rental market demand is almost as it was prior to the coronavirus pandemic. There are lots of tenants looking for a new place to live.
One of the major reasons for this sudden increase is the fact that there has been an unlocking of the housing market meaning that people are now able to view properties again and move if they want. It is a lot easier and quicker for people in the private rental sector to move as the logistics are simpler and the paperwork less.
Some other reasons for the surge in private rental sector demand could be that some people have lost their jobs because of the pandemic. A lot of people have been working from home and it is also possible that they are seeking new surroundings. The lockdown is also likely to have had a negative impact on some relationships as well.
Opportunity for Buy to Let Investors
According to data from Rightmove, there are not enough rental homes available to satisfy the demand. They said that new listings for rentals are currently down by 4% on the numbers for this time last year.
With this lack of supply it is very likely that rent prices will increase. Current landlords will have the luxury of being very choosy about the tenants that they accept. It is no secret that the private rental sector has been growing for around two decades in the UK. People have changed their attitudes about purchasing properties and some just simply cannot afford to buy.
Where should you make your next Buy to Let Investment?
It is important that you know the best places in the UK to make buy to let investments. By choosing an area where the demand is high you will minimise void periods. Rightmove said that the South West of England has the highest demand for private rentals at the moment with a 34% rise on the demand in May 2019.
Just behind is the East Midlands with a 33% increase, the West Midlands with a 31% increase and Yorkshire up 28%. Next is the Humber region with a 26% increase, East of England up 25%, London seeing an increase of 23% and the North West of England up 21%.