The private rented sector was recently named as one of the biggest growing investment areas in the UK, and it's easy to see why. Over the last few months, yields have stayed steady, while the level of demand for rented homes has never fallen away, even as more and more people have been buying their own properties.
The general attitude of people under the age of 35, who are now deciding to rent rather than buy because of the convenience it offers, has also helped to increase the sentiment among buy-to-let owners and potential landlords.
And now online letting agent PropertyLetByUs has reported that all of these positive factors have come together to increase the desire for buying more homes to let across the UK market. It said that there are far more landlords looking to expand their portfolios in 2015 rather than selling.
When prices rise, it is normal for landlords to want to sell. This allows them to take advantage of increasing values, giving them a real return on their investment without having to wait for the long game.
However, in 2015, PropertyLetByUs reports that only a quarter of people who own buy-to-let properties are considering selling some of their stock. By way of comparison, more than half are looking to expand their portfolios by buying additional properties moving forward.
"Landlords have enjoyed good rental yields and increased asset values in 2014," said Jane Morris, managing director of PropertyLetByUs. She also added that only three per cent have experienced falling demand this year, which means confidence remains high.
She also said that in the last year, the number of properties being offered up for rental has increased by 50 per cent, showing that landlords are already buying more homes this year. However, this rate of growth could be even more impressive next year as confidence grows further.