The rental market has picked up for a consecutive sixth month, suggest sources in the property sector, with reports showing a 4.3% increase in January – which is 0.2% higher than the 4.1% figure in December.*
The South East topped the rental growth market, seeing a 10% increase in rents over the last 12 months.
The lowest rental region in the UK was the North East, with an average rental cost of £539 per month, whilst the highest region being Greater London had an average rent of £1,556; an approximate difference of 288% for the country's capital.**
What are the main reasons for this rental market growth?
Cost is an obvious drive for rental growth as we continue to see house values rise.
From 2007 to 2017, the property market saw the average UK house rise in price by just shy of £40,000, which has had a knock-on effect to tenants.
Another possible factor could be that – in the last 12 months – more and more people are becoming tenants due to so called ‘risk factors’, for instance, lengthy 25-year mortgages and not wanting to worry about house depreciation over time.
This has been amplified by those who have decided to rent for longer, such as first-time buyers delaying their purchase plans.
Changes in society also play a massive part in the rental market, as households are embracing the ability to move out easier and not being committed to a given property.
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*Letting Agent Today
**Statista