Friday News #0128 – Tenant Demand Sees Average Uk Rents Hit Another Record High

Recent research highlighted that 44% of existing landlords are planning to expand their portfolios over the next 12 months. Confidence is high amongst investors, and for good reason.

Multiple businesses are reporting vast rental demand, which is, in turn, pushing yields higher, particularly in cities across the UK as offices reopen and people return to work. As the appetite also remains strong for buying property, despite the end of the stamp duty holiday, the outlook for house prices is also positive. There are many appealing factors pointing to long term success for investors who secure a property in the not-too-distant future.

Here’s what we’ve seen in the news this week: 

Tenant Demand Sees Average Uk Rents Hit Another Record High: Vast rental demand rippling across the country has fuelled yet another rise in monthly rents according to the latest data and analysis from Homelet. According to the latest figures, the average rent in the UK now sits at £1,061, up 7.5% on the same time last year and a 0.8% increase from the previous month’s figures. Read more.

London Seeing A Return Of Buyer Demand: Boomerang buyers are returning to the capital, say Knight Frank, who highlight that some of the pandemic-fuelled trends seen across the UK property market over the last 18 months may be rather short-lived. According to the latest research, a flat in the capital has risen up the list of requirements for those who made the move to the country during the pandemic. Read more.

Rental Demand Rising Across The Major Uk Cities: Returning workers are helping to fuel a rise in rental demand across virtually all major UK cities, according to new research and data from estate and lettings agent, Barrows and Forrester. During Q3, rental demand increased across the vast majority of major UK cities due to a return to the workplace, amongst other things, spurring greater demand for rental homes within major urban areas. Read more.

Appetite For Moving Home Remains Strong After Stamp Duty Holiday: Living better, in closer proximity to family, friends, green spaces and amenities have become the stand-out priorities amongst prospective house hunters looking to move home in the post-Covid property market, according to newly released research from housebuilder, Redrow. The new analysis of 2,000 UK adults reveals that ‘living better’ means being part of a community near to friends and family, with access to open spaces and shops providing essentials. Read more.

Rental demand set to stay high as first time buyer age rises: With house prices at an all-time high, showing no signs of waning, the age of first-time buyers is on the rise according to comparethemarket. The comparison site has analysed government data from 1992 to 2020, fed that through a forecasting model, and predicts substantial price rises in the long term. It says that by 2031, house prices in Greater London are predicted to increase by a third, whereas the rest of the UK are likely to see a slighter lesser increase of 30 per cent. Read more.