Zoopla has predicted a 5% increase in rental demand for 2024. Here are few reasons why we think the rental market in 2024 is booming and why you should invest in property.
Affordability in rental market
In 2024, the affordability rates in the UK have been painted as a ‘mixed picture’ by Nationwide. The affordability seems to vary region to region:
The UK’s increase in rent in 2024 so far has been 9.7%. Looking at specific regions, London witnessed a slowdown, the rents increased by just 9% compared to 17% increase of last year. Other cities fall within the brackets of affordable rents because of substantial increase in earnings, although they are still experiencing high rents (Nationwide).
Popular forecasts state that the mortgage rates are to be reduced further in the coming years, with the current base rates being at 5.25% which will make it easier for people to buy property. This will play an upper hand in influencing the affordability of houses in UK.
Now, should you invest?
The dearth of affordability and demand for rental properties has slowed down the rental demand in recent times. Albeit the increasing shift towards remote and hybrid work culture has created the inception of a robust rental market. There has been a 6.2% increase in tenant-paid private rental prices in the year ending December 2023. Forbes stated that the working professionals spendings on rent increased by 33% in 2019 and 20% in 2021. It’s still a significant increase in demand, although it seems to be coming down, because of the high rents in almost all parts of UK.
Increasing demand, and the overall trend of increasing rents indicates a healthy market for investment! Have a browse at the various rental properties E.R.E has to offer here.
