Are you looking for a new area to invest in property? If so, these new figures explain why you should buy a rental property in the Home Counties…
The latest rental index from Knight Frank indicates that demand for rental properties in the Home Counties has soared over the second quarter (Q2) of the year.
Compared to Q2 2015, the number of new prospective tenants in the Home Counties rose by 6% in the Home Counties.
The property firm reports that much of this demand for rental properties was from executives being relocated from London and abroad. The index explains that following a slowdown in corporate tenants in the run-up to the Brexit vote, the number of inquiries in July was the highest for the year – 19% higher than in February.
Knight Frank also found that the number of viewings was up by 12% annually, while 38% of tenants in the Home Counties were non-UK nationals between April and June. In Ascot, Cobham and Esher, the proportion of international tenants rose to 47%.
The firm notes that the three months leading up to September are usually the busiest time of year for the private rental sector, as tenants look to move before the start of school terms.
However, the report adds that prime rents have fallen by 0.6% between April and June.
Frank Knight associate Oliver Knight explains: “Despite robust activity levels, agents note that any upwards pressure on rents has been countered by rising stock – especially at the top end of the market.
“In the wake of the EU referendum, there is already anecdotal evidence that some vendors are deciding to let their property until more clarity emerges, and this could further weigh on rental values in the meantime.”
If you are looking to take advantage of high demand, seek a new investment property in the Home Counties.
Although rents have fallen slightly in these areas, an influx of corporate tenants should ensure a reliable rental income. If you are worried about your tenants defaulting on their rent, remember that you can protect your income with Rent Guarantee Insurance. Our policy also includes Legal Expenses Cover so that you don’t miss out!
Wherever you decide to invest in the country, always make sure that you protect your property with the widest cover on the market. Landlord Insurance from Just Landlords includes 33 essential covers as standard and has been rated 5-star by Defaqto – does your current policy offer you this much cover?