Neil Cobbold, Chief Operating Officer of PayProp, comments:
A perfect storm of conditions has pushed asking rents to record highs in many parts of the UK during Q3 2019.
The tenant fees ban, continued uncertainty surrounding Brexit and rising demand due to lower stock levels have all contributed. In the circumstances, it’s reasonable to expect rents to increase further in Q4.
Continued rental growth is a good news story that letting agents can share with their landlords. Besides being good for the bottom line, it underscores the long-term financial benefits of letting property.
Moreover, rising demand means agents can promise lower void periods as eager renters snap up properties faster.
Reacting to the record rental prices recorded in Rightmove’s data shows, almost a third (30%) of landlords surveyed are planning to increase their current portfolio – despite recent tax changes making property less attractive as an investment.
Meanwhile, a quarter (24%) of landlords are looking to sell at least one property, something that could exacerbate the current stock shortage.
While this could put tenants under further pressure, it benefits landlords as it creates an opportunity for those who want to grow their portfolio by picking up ready-made rental properties in a market where demand continues to outweigh supply.
Notes to Editors
PayProp is an automated transactional and reconciliation platform for the residential property rental sector that is both easier to use and more powerful than existing solutions offered by banks and traditional software vendors.
PayProp was launched in 2004 and has quickly grown to become one of the largest processors of rental payments for the property management industry.
In the United Kingdom, PayProp is recognised as an Industry Supplier by ARLA Propertymark and sets the standard for speed and accuracy of payments, cost and payment status transparency, complete transactional control, and regulatory compliance.
PayProp is part of the Humanstate Group, an international company with subsidiaries in the United Kingdom, United States, Switzerland, Canada and South Africa.
For more information, visit: www.payprop.co.uk.