Where to Find the Highest Demand for Rental Properties

Highest Demand for Rental Properties

Who From?

Both students and young professionals have the highest demand for rental properties. Many investors and landlords would turn away from the prospects of student tenants but gone are the days of HMOs (house shares)! Nowadays, the preferences of students are not unlike that of young professionals. Both types of tenants have a high demand for single-let accommodation, which is reflected in high rental prices and potential ROI.

Areas with a high youthful population, higher than the national 21% ratio, are excellent locations for investment. Bradford, for example, has young people making up 29% of its population. This is due to its university and proximity to Leeds for commuting students and young workers.

Highest Demand for Rental Properties

What For?

Whether an apartment or house, high-quality single lets are what young professionals are after. This is great news for investors as studio or 1-bedroom apartments are the most affordable buy-to-let properties – which would mean the potential for greater returns.

More and more tenants, especially young professionals, are increasing their expectations for rental properties. Even under affordability pressures, over 40% of first-time buyers and existing tenants say they would pay more for energy-efficient properties. This is because of rising energy prices – and it is new-build properties that are built with higher EPC ratings as standard.

For this reason, new builds are but one of the best types of property investments and see the highest demand for rental properties. Investors and landlords should consider off-plan developments and even improving the energy efficiency of existing properties to meet this ever-present and ever-growing demand.

Highest Demand for Rental Properties

Where?

Due to affordability, city outskirts and suburbs receive the highest demand for rental properties from students and young professionals, especially when connected with accessible commute routes. With lower purchase prices and high rent, returns can be highly profitable.

When it comes to university locations, rental demand will be forever fruitful. However, the highest demand for rental properties here will not just be from students. Investors can also consider short-term lets as well as assured shorthold tenancies. Short-term rentals can be a great option for families visiting students, for graduation, or even open days. Post-graduates and young professionals are likely to stay in their university’s city, especially if their town or city offers opportunities relating to the university’s speciality – just like Loughborough and its thriving sports courses.

For property investment, it is clear. The highest demand for rental properties can be found in areas with a young population, high graduate retention rates, or strong and growing business sectors. This is an ideal first step for a property investment strategy.