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Since 2001, demand for rented accommodation in the UK has doubled – from 2.3m to 5.4m in 2014. Numbers of tenants in the UK are growing at a staggering rate, yet surprisingly, the buy-to-let market has slowed recently.

As a result, savvy landlords are looking to extend their portfolio now, while demand is outstripping supply. Here’s some more information.

Why Are More People Renting?

There are a number of reasons why more people are choosing to rent rather than buy. Rising prices are preventing first-time buyers from getting a foot on the property ladder – particularly in cities like London. The Royal Institute of Chartered Surveyors (RICS) recently commented that home ownership was becoming ‘increasingly unaffordable’ and that the situation will only get worse as demand for rented housing rises.

However, there are other reasons why people are choosing to rent. Increased career mobility means that for some, committing to a house purchase is not a viable option. Likewise, there are a growing number of ‘silver renters’ – people over the age of 55 who are seeking rented accommodation after a divorce or bereavement.

Is This Good News for Landlords?

Whilst the situation isn’t great for tenants, it’s certainly very good for those looking to invest in property in the UK. Demand for rented accommodation is outstripping supply by a considerable margin, which means it’s very much a landlord’s market at present.

In spite of the situation, throughout 2016, property investors have been far warier about investing in UK property. There were two main reasons for this; the increase in stamp duty in April and of course, the EU referendum. Indeed, the RICS also found that 86% of landlords had no plans to grow their property portfolio this year, or over the next five years.

Whilst it was undeniably prudent for investors to be cautious during the first half of 2016, the current market trend seems to suggest that now is the time to start seeking buy-to-let property for sale.

Why Invest in UK Property Now?

Prices have dropped in certain areas (notably parts of London), and if past trends are anything to go by, it seems likely they’ll pick up again in the future. This suggests that now is a good time to start scouring the market.

Likewise, high demand for rented housing means that rental yields are currently excellent in many locations in the UK – particularly the northern cities, like Manchester and Liverpool.

The best places to look for buy-to-let property for sale are property auctions, and with property investment agents. Whilst bargains can sometimes be found in the windows of high street estate agents, more often than not, you’ll save considerably more by working with an agent or buying a house at auction.

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