Monday 26 June 2023
The UK rental market is still currently experiencing an unprecedented level of growth, with the average asking rent increasing for the 15th consecutive month!
Rental demand continues to outstrip supply, resulting in rental prices increases. As we come towards the end of the year, which is a busy time for the rental market due to students moving and the rising demand for short-term accommodation from tourists and business travellers, rental demand in city centres could increase even more
Zoopla’s latest rental market report shows the average rent in the UK (excluding London) has hit £1,126, which is an annual increase of 10.4%.
Here is a region/city breakdown:
Manchester:
- Average Rental Income £982 PCM
- +13% growth from last year
Birmingham:
- Average Rental Income £863 PCM
- +9.8% growth from last year
Liverpool:
- Average Rental Income £764 PCM
- +8.5% growth from last year
Cambridge:
- Average Rental Income £1,444 PCM
- +8.7% growth from last year
Savills forecast average rents in the UK to increase a further 18.3% between 2023-2027, showing positive signs for rental growth, making now a great time to invest in UK property.
Richard Donnell (Executive Director at Zoopla) added, “The cost of renting is at its highest for a decade”.
If you were looking for a sign to invest in property, this could be it. With an ever-increasing tenant demand and rental prices forecasted to keep growing, property investors have the chance to generate long-term financial gains while providing high-quality housing solutions to renters across the country.
We have some fantastic developments which are due to complete soon in popular buy-to-let areas, click here to view our current investment opportunities.
Why is now a great time to invest?
Rental demand has steadily increased over the past few years as more people opt not to purchase their own homes but instead look for rented accommodation.
This trend has been driven by factors such as increased house prices, making it difficult for first-time buyers to get onto the housing ladder, rising living costs, and changing lifestyles leading many young professionals towards renting rather than buying a home.
As such, there is currently strong competition among renters, making it an ideal time for landlords or potential investors who want to take advantage of this situation and benefit from higher returns on investment (ROI).
The benefits for Property Investors that choose to invest during times when rental demand is high include:
✅ Higher ROI – Increased competition between tenants means landlords can charge higher rents in line with the current market, thus boosting their return on investment (ROI).
✅ Longer Tenancies & Lower Void Rates – High tenant demands also result in longer tenancy periods reducing void periods and costs associated with tenant-find.
✅ Reduced Maintenance Costs – When tenancies last longer, the maintenance costs associated tend to become lower per annum resulting in higher returns.
Get in touch to discuss your next property investment with our industry experts!
- Call us on 0113 380 8930
- Email us at info@ereproperty.com