Friday News #0129 – Demand And Rents On The Rise As Tenants Return To City Life

As large numbers of tenants return to living in the cities up and down the country, the UK rental market is booming. Existing landlords in many parts of the country are now seeing exceptional rental growth.

Certain areas are seeing a considerable spike in interest, such as Prime Central London where the number of new tenancies is the highest it’s been in over a decade and average rental values are rising too, partly fueled by the return of international buyers and tenants after a period of absence during the pandemic whilst travel was restricted. 

For investors, these latest reports demonstrating the latest data, trends and positive forecasts instil further confidence in the UK’s robust and resilient property market.

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

Demand And Rents On The Rise As Tenants Return To City Life: The height of the pandemic and subsequent lockdowns saw thousands of tenants heading out of the cities to be closer to family and friends, resulting in demand for urban tenancies and rents falling off a cliff-edge. However, as the country adjusts, offices reopen and society returns to some semblance of normality, tenants are beginning to boomerang back to city life resulting in double-digit growth in rents in some areas and competition heating up for flats across Great Britain’s biggest city centres. Read more.

International Buyers Are Back As Travel Restrictions Lift — what does it mean for London house prices? The relaxation of UK travel restrictions has opened the floodgates for overseas buyers to return to the British capital after a 16-month absence. Read more.

Uk House Prices Could Surge As Fewer Properties Come On Market: The UK’s red hot housing market cooled slightly in September following the end of the stamp duty holiday deadline, as buyer demand stabilised and sales and instructions softened. RICS’s monthly housing market tracker for September showed a steadier trend in buyer demand coming through, following a brief pull-back in the wake of the flurry of activity seen prior to the phasing out of the tax cut. Despite this, a lack of supply is the key element holding the market back, the survey found. Read more.

Prime London New Tenancies Running At Highest Number For Decade: The number of new tenancies started in September in prime areas of London was the highest monthly total in the last 10 years says Knight Frank. Average rental values rose on a quarterly basis by the largest amount in a decade in prime central (up 2.8 per cent) and prime outer London (up 2.6 per cent). The number of new prospective tenants registering was still 56 per cent higher than September last year.

Rental Growth “Amongst Fastest In A Generation” Says Agency: Average annual rental growth across Britain hit 8.0 per cent in September, the third fastest annual rate of growth recorded this year. The data comes from lettings agency Hamptons. Read more.