Studies show clearly that the typical rent has grown more than 20% during the last few years, in addition to a significantly increased interest in rentals as compared to buying.
The results of this happen to be two fold and not always in the interest of anybody, it affects landlords and tenants at the same time. Even though this might be good news for landlords and linked industries, tenants are finding things progressively difficult because they need to compete for rentals in the marketplace.
Although there's a distinct upturn in the lettings and rental market, many lenders are closing their doors to what is known as 'short-term' investors. Previously, it was much easier to get property and sell it off shortly afterwards. Most lenders and banking institutions are not willing and prepared to give loans to short-term players at this time, and therefore are looking at career landlords that seek to keep their home for a longer period of time. The industry is at this point 'increasing restricted' being mostly restricted to existing clients and not so much newcomer investors which look to make a quick buck, additionally there is no reason to expect this would change any time soon.
The good thing is that a couple of select banks begun to provide mortgages again to new home buyers, despite the ongoing development. This means that after a rather long time, a lot of prospective home buyers might now have a chance to receive the loan they required so urgently. In past times, a few banks were simply forced to stop the accessibility to mortgages due to overwhelming demand. Today, several banks have caught up with their backlog and are now little by little willing to provide loans to individuals who've been on the waiting list for a number of years.
The boom in the rental market affects the domestic market different compared to the industrial rental market: The commercial market is still suffering caused by a bad economy.
The current development on the rental market with increased rents doesn't necessarily have a beneficial affect on those letting a property. The irony of this situation is that landlords are in reality beginning to suffer as a result of failed rents, this is clearly offsetting the initial benefit of higher, average rental prices.