Yuno something is going on when Zoopla reports that the UK rental market is roaring ahead.
Outside London, rents are going through the roof increasing at their fastest rate for a decade as renters come back in droves to the big city after the pandemic as life slowly returns to normal(-ish).
Monthly rents outside of the capital are now averaging £790, up from £752 a year ago.
South West England leads the (rental) space race
It’s blast off in South West England, which is seeing the largest increase in costs of 7.6% year on year. In close orbit are the East Midlands and the North East with rises of 6.8% and 6.5%.
Nationwide, there are towns and cities starring and shining out from the rest with big increases; Wigan (10.5%) and Mansfield are stellar performers as are Hastings, Blackburn, Barnsley and Norwich (9.4% or more).
But even with the rises, these areas remain some of the most affordable for tenants. A single earner has to spend an average of 21% of their income on rent, compared with a UK average of 32%.
London: a property black hole?
The rental market has not roared as loudly in London, which has seen rents fall 3.8% year on year. However, there is hope at the end of the tunnel as the rate of decline is starting to decrease as more tenants return to the nation’s economic powerhouse. The average nationwide rate including London is now £943 per month, 2.1% more than a year ago.
Why are cities bouncing back?
People emerge from lockdown into a brave, new world of city centers where offices, bars, restaurants and leisure centres are reopening.
This resurgence is leading to a huge increase in tenant demand, which was close to 80% higher than average levels last seen between 2017 and 2019.
Other factors fuelling the increase are seasonal such as students returning to university campuses, families moving at the start of a new school year and graduates venturing into their first job.
12 inner London boroughs have recorded average rents jumping an average of 2.3% from May to July, with other cities such as Birmingham, Edinburgh, Leeds and Manchester also experiencing similar increases.
This is a world away from what was happening at the very beginning of the pandemic when there was a shift to renting in rural areas.
Do Yuno what to do next?
With the welcome upswing in the UK rental property market, it is important as a property professional working as an agent, property/building manager, mortgage consultant or investor to be prepared.
Intelligent property management solutions such as Yuno will help you deliver by ensuring that portfolios have the correct property compliance and licensing.
Send us a message and see how we can help.
