The UK rental market has faced some difficult trading conditions during 20/21. Many renters have opted out of 12-month contracts with economic uncertainty and the open-ended UK furlough scheme not offering any real financial security. More people have chosen to move in with friends and family until we see light at the end of the tunnel.
With the successful rollout of the UK vaccination program, more people feel comfortable going about their day-to-day business. With easing restrictions demand across all sectors continues to bounce back, with property rental leading the way.
The sentiment of most people trapped by covid is that we need our own space. Too any people have had to pile in together, often in a small family home. Student property in particular has seen some of the most impressive demand, as more students look to live out of home than ever before.
The private sector too has seen more young professionals shun saving for a deposit in favour of gaining some independence. As reported in the Guardian, “Rents across the UK are rising at the fastest pace since 2008 as strong demand outstrips supply. Private sector rents in September were 4.6% higher than a year earlier at £968 a month on average, marking the strongest growth in 13 years.
Excluding London, rents across the UK were up by 6% annually, a figure that Zoopla said was a 14-year high.”
With supply way down, we can expect to see rental incomes continue to grow long into 2022. With banks still reluctant to offer good interest rates and lending terms, now is the time to make the most of the UK’s reliable rental market.