It’s a brand new year and with fresh starts no doubt come thoughts of future plans. Now, there has been a lot of speculation and reporting on the rental market, with many anticipated government reforms, so to better understand your possible investment options its worth taking stock of where things are at.
Zoopla’s December Rental Market Report shares some interesting insights. The average annual UK rental cost has risen by £3,240 since 2021, with rents 3.9% higher over the last year. Although this is an increase it is the lowest rate for three years and suggests a potential stabilisation in line with affordability constraints. Their prediction is the average UK rents will be expected to rise by 4% in 2025, with larger cities, including London, being more stable while rents continue to rise in more affordable areas.
Further the widely reported imbalance between supply and demand has seemingly narrowed slightly. Although there are gradual improvements it remains that there are more rental enquiries than available properties and well priced rentals do not tend to spend much time on the market.
The government’s 1,500,000 new build homes target will no doubt create a number of new properties becoming available to rent, with private landlords an essential part of supporting rental supply. There are many factors that continue for the average prospective tenants and why demand will always remain including the affordability, or unaffordability, of homeownership for first time buyers, migration for work and study and low growth in the size of the social rented sector.
As housing policies evolve, its important to stay informed on how legislative changes may impact the rental landscape. If you’re considering an investment property or becoming a landlord but aren’t quite sure what’s right for you, why not speak to myself or my team about your options.
Written by James Hunt, Durden and Hunt Co-Founder
Loughton Estate Agents, Hornchurch Estate Agents, Ongar Estate Agents, Wanstead Estate Agents, Colchester Estate Agents,
