Rents Are Rising – Good News For Landlords

At Thomas Morris, we are keen to support landlords as best as we can, and the good news is, there is significant demand for rental property.

This is something we have seen in our dealings with clients, and it has been reported by many trusted names in the UK housing market. Zoopla is a leading property portal in the UK, and they have spoken out about UK rents, and the demand for rental property.

Landlords pleased that rents are increasing

The “key takeaways” shared by Zoopla are as follows:

1. UK rents, excluding London, are increasing at their highest rate for over a decade.

2. Monthly rents outside London are averaging £790, up from £752 a year ago. It means renters are paying an average of £456 more a year.

3. Competition for rental homes is fierce at a national level, with properties letting almost a week faster than last year.

With people heading back to city centre living, no doubt influenced by businesses returning, rents outside of the capital are increasing at their fastest rate since 2008.

According to the most recent Zoopla Rental Market Report:

• The typical price of renting property in the UK, but excluding London, stands at £790

• Over a year, this sees tenants pay an additional £456 in rent

Gráinne Gilmore is the head of research at Zoopla, and she said: “There has been a sharp rise in demand for rental properties in recent months, especially in central city markets, signalling the return of city life as offices and other leisure and cultural venues continue to open up more fully.”

There is positivity across the country

Key figures about rent increases:

• When you exclude the capital, rents in the UK have risen by 5% in the past 12 months

• In January 2020, the increase was 2.2%

• The South-West of England saw the largest increase, rising by 7.6%

• The East Midlands experienced an increase of 6.8%

• The North East of England saw a rise of 6.5%

• In Wigan, the cost of renting rose by 10.5%

• In Mansfield, there was a rise of 10%

Areas such as Norwich, Barnsley, Blackburn and Hastings all experienced an increase of at least 9.4%

Kate Eales, a known name in the property and rental sector said; “Rents are recording healthy growth in cities, but in the most desirable areas, there’s evidence of growth up to 25%. We recently let a home in the Cotswolds for £3,750 a month when it was previously let out at £2,200 and another was let for £5,500, up from £4,100.”

Kate Eales also said; “The recovery in the rental market has, in many ways, mirrored the boom in the sales market, with people looking for homes that accommodate a different set of needs shaped by their lockdown experience. Lack of stock and high demand are inevitably driving price growth. This stock depletion is a result in part of many accidental landlords having now sold their properties - benefiting from the soaring demand in the sales market.”

Gráinne Gilmore also said; “As ever, much will be dependent on the extent to which the current rules around Covid-19 continue as they are. But given no deviation from the current landscape, the demand for rental property, coupled with lower levels of supply, will continue to put upward pressure on rents. In London, this will translate into rental growth returning to positive territory late 2021 or early 2022.”

If you are looking for help with any matter of the property or lettings market, it is best to speak to property professionals. You can book a sales or rental valuation appointment directly on line at a time and date of your choice by clicking here or alternatively click here for individual branch contact details.