Q3 of 2015 suggests that a healthy rate of demand growth across the residential market will continue thanks to population growth and a strong underlying economy. Available supply of residential properties remains firmly in decline, causing significant upward pressure on rents and capital values. Due to these trends, property investment in the UK is soaring.
These factors are not only predicted to sustain demand for house purchases, but will also further strengthen the private rented sector (PRS) in the UK. The PRS has already risen to over 4 million households, with demand for this type of accommodation rising at a stratospheric rate and yields growing accordingly.
With the number of people in this key renter demographic remaining stable and employment rates on the rise, investors in the UK will continue to see higher yields than those found in other countries.
Overall, demand growth continues to heavily outpace that of supply, meaning that rents, of all sectors, are expected to rise across all parts of the UK.