Are We Running Out Of Property Lets?
I have read a lot of stories recently about the impact surges in tenancy demand are having on the property market, but are we going to run out of property let’s like property advisors are predicting? I am not so sure…
It is not that there aren’t enough properties in the UK. Quite the opposite…
There are supposedly 500,000 properties lying vacant at the moment as local authorities don’t want to use up funding bringing them up to standard. So straight away if we could access those 500,000 properties we would be able to make a huge dent on this demand.
So what is the problem? Lack of finance…
Even with the right investment strategies property investors still need to be able to access quality buy to let deals to enable us to invest. Yet once again, lenders are ignoring this opportunity and seem reluctant to widen their diversity.
Take this statistic…
During the last quarter 61,000 property owners filled in tenant applications. And their reasoning – because they cannot get a mortgage…
Now I know lenders are scared to find themselves in the same situation they were in during the recession. But they are now impacting on the property market in a different way by making it harder for property investors to buy properties such as the 500,000 listed above and thus reduce this tenant demand!
Sorry… I didn’t mean to go into a rant there, but I think many of you would agree with me that something needs to be done soon to alleviate this pressure, especially as coming benefit cuts will make it even harder for property owners to buy.
There is only so much we can do as a niche to supplement this need before the government needs to act i.e. improve lending, build more properties, give buy to let greater recognition…
Anyways on the upside, there is definitely plenty of demand for property lets at the moment so making a profit from buy to let has never been easier.
Let me know what you think.
Wendy xx
