Landlords could benefit from a rural exodus, and we’re ready to fund their investments

We could be on the verge of seeing a turning point in the rural property market. One which landlords and property investors could take advantage of.

We’re all aware of what happened in this corner of the property market in recent years. The pandemic forced many to work from home and flexible working became the norm. City dwellers realised they could work from anywhere in this new world, and so many flocked to greener pastures. Literally – demand skyrocketed in places like Cornwall and leafy London suburbs.

But now, the bubble is bursting, if it hasn’t already. Many Londoners, for various reasons, are now trying to?sell the homes they bought during the pandemic ?and move closer to where the action is. The trouble is, they’re struggling to get this done.

Higher mortgage rates, coupled with the work-from-home craze slowing down, have left many homeowners stuck. Not only are they struggling to sell their homes, they’re also being forced to lower their asking prices to tempt buyers.

Still, while sellers may be struggling in certain English countrysides, renters in these regions are arguably facing a tougher time. There is unprecedented demand for rentals.

Half a million people have been forced into renting over the past decade in rural England. A?19% increase ?that’s outpaced the rises seen in London and other cities. Also, perhaps out of necessity, these renters are staying put for longer periods.

The average tenancy now lasts for around 924 days, according to the?Deposit Protection Service . That’s just over two-and-a-half years, up 30% from the average length in 2020.

As Londoners flock back to the capital, there may be opportunity to purchase rural properties at relative discounts, providing that rental stock that they are crying out for. Renters in these regions will also likely be sticking around for longer, while?yields rise .

Rent rises, while slowing recently, are still there, and there are over 15 enquiries for every home to rent according to Zoopla. This is double what was seen before the pandemic. What's more, there’s opportunity for investors despite the obvious lack of supply.

Many investors appear to be missing a trick. New investment from private landlords is low, with the average letting agent currently listing 12 homes for rent, down 28% from the pre-pandemic average.

Should some investors notice the potential in our suburbs, villages, and coastal towns – we’ll be there to help them take advantage of the opportunities. Our funding is there to lock in BTL assets, HMOs, holiday lets, and many other rental opportunities. We’re ready to take your call, and support your clients.

MFS are a bridging loan and buy-to-let mortgage provider, not financial advisors. Therefore, Investors are encouraged to seek professional advice. The information in this content is correct at time of writing.

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