To say the lettings market is hot right now would be an understatement, stock is being let as fast as it arrives. There has been a huge increase to rental yields with some northern areas pushing 8.3% at their peaks as was shown in Fleet Mortgages’ report of England and Wales with comparisons made between Q2 2021 and Q2 2022.
Things are starting to balance now with the annual yield rates generally seeing a fall of 0.6% which compared to the rise is more an effect of the peak being reached and the new standard settling in.
COO of Fleet Mortgage, Steve Cox, highlighted that a lot of the positive factors are due to a strong tenant demand coupled with a low supply level.
Fleet mortgage was also predicting that things would stay as they are for now, especially while the supply-demand imbalance still exists.
Something which has many landlords waiting before making any investment decisions is the end effect of the rise in cost of living, coupled with mortgages becoming more expensive.
Meanwhile stocks will remain limited, rental prices will hold at their current rates and people will continue to speculate on the market.
Written by Toby Dawson
