The popularity is clear to see: in Guernsey 27.7% of Local Market and 35.9% of Open Market properties are rented, in Jersey it’s 25% of the total stock and in the UK 20% of households are rented, a number which has doubled since 2002.
These figures demonstrate that renting is a popular option; whether that is through necessity or preference. In the Channel Islands the demand for rental homes is far in excess of what’s available.
Of course an imbalance in supply and demand represents an opportunity for potential investors and we’re starting to field queries from those interested in investing in property to let it out; a sensible option in the current climate.
Demand to be met
Renting is still a prevalent option for young professionals in the Channel Islands who are saving to get onto the housing ladder or want to live independently, or a combination of the two. But this demographic is being supplemented by people from across the age spectrum.
Retirees now regard renting as a prudent option as they can sell their home, divest themselves of that responsibility and have a more flexible lifestyle that leaves more room (and money) for travelling or pursuing other passions.
Those moving to the islands also often rent property as they ‘test out’ the way-of-life before settling permanently. We’ve had several clients who move between rental properties as they try out living in different parishes before deciding where they want to make their permanent home.
The expanded pool of potential renters has added up to an increased demand for rental property in the islands. Our teams are incredibly busy and high-quality properties can be snapped up in under 24 hours by a buoyant marketplace.
A good investment
The conditions in the rental market mean that buying to let is a sensible investment for someone looking for returns that outperform the interest rates that banks are currently paying.
The islands have many homes that would make great rental properties and there are also options for those who want to take on a redevelopment project to subsequently rent out. Yields from lettings vary across properties but with interest rates so flat it’s fair to say that investing in property is a sound option that will make financial sense for many.
In order to demonstrate the potential returns from lettings we have displayed the annual estimated gross yield prominently on every listing on our award-winning website. This makes it easy for users to see the return they could expect on any property and realise the value that an investment in property could bring.
Demand for rental property is at an all-time high in the islands so get in touch with our team to learn more about buy-to-let options, letting out your current property or our existing rental stock.