Theres no denying the UK rental market has experienced a notable shift over the past year, and is set to face further changes with the proposed Renters Rights Bill anticipated to come into effect in 2025.
The industry reforms, if approved and implemented, will undoubtably reset the landlord and tenant relationship increasing the complexity and regulations required to rent property.
When considering the implications of proposed policy changes and that rents have risen by just 3% in the last 12 months, which has been the slowest rate of growth in 3.5 years*, its perhaps understandable why there is some trepidation from existing and prospective landlords regarding investing in the rental pool.
Its likely no coincidence that the number of available homes for sale has reached a 10-year high**, with some landlords deciding to sell. Rightmove suggests there's been a rapid growth in the number of properties for sale with 14% more flats coming to market and 5% more houses. However it would be remiss not to acknowledge the Stamp Duty changes have played their part in the volume of available homes so far this year.
There are some positives within the rental market with Zoopla predicting that UK rents will still increase by 3-4% in 2025. Additionally they suggest there are currently 12 renters competing for each available rental market showing that demand still outweighs supply, ensuring the market stays competitive.
As always it helps to be informed so whether you’re an investor, prospective landlord or tenant reach out to myself or my team to discuss the market, possible legislation changes and what to consider when making property plans this year.
Written by James Hunt, Durden and Hunt Co-Founder
*Zoopla
** Rightmove
Loughton Estate Agents, Hornchurch Estate Agents, Wanstead Estate Agents, Colchester Estate Agents, Ongar Estate Agents
