Tenant demand is shifting; outside of London rents are rising, especially in city centres and top commuting hotspots.
Investors are wise to focus not only on the demand for certain locations but also the typical tenant profile in a specific area, ensuring they buy a property that will meet the demand.
Here’s what we’ve seen in the news this week:
Rents outside London rising at fastest rate since 2008: Rents outside London are soaring at their fastest rate in more than a decade, according to a property website. Zoopla said private rental prices across the UK increased by 5% in the 12 months to the end of July – adding £456 a year to the average tenant’s bill. The 5% jump is the biggest recorded since Zoopla’s index started in 2008. The firm said it was down to increased demand for city living amid limited supply. As lockdown restrictions have eased and businesses have reopened in city centres, there has been a marked return to more built-up areas, it said. Read more.
Commuter Belt Rental Shortage As Tenants Still Leave London: Demand for private rented housing in the South East is the second highest in England – and it is thought to be because tenants are leaving London to move further afield. Read more.
International buyers and tenants are keen to live in the UK: Global travel is on the mend as the UK has opened its doors to international countries that meet the government’s criteria. New research from the estate agency, residential and commercial property consultancy Knight Frank indicates that international appeal for UK properties is on the rise. Read more.
UK house prices hit record high despite cut in stamp duty break: The average UK house price reached a fresh record high in August while annual inflation cooled to a five-month low, after the partial end of the stamp duty holiday in England and Northern Ireland. Halifax, one of the country’s biggest mortgage lenders, said the average cost of a property increased by 0.7%, or £1,789, to £262,954, topping the previous peak of £261,642 recorded in May. Read more.