If you are a landlord or property investor, keeping up with UK rental market trends helps you assess when it is a good time to build your portfolio. The Zoopla Rental Market Report (December 2023) gives the latest information so far; this blog summarises some key points that will interest you.
Overall, the trends show that the UK rental market is starting to stabilise. Over the past few years, rent has increased substantially, and it is felt that this is now reaching the maximum affordable price. Latest figures indicate that average rents for new property lets have risen by 9.7% since a year ago (Donnell, 2023). Landlords need to consider what tenants can afford to pay and that they have slightly more choice now as the supply of rental properties is starting to improve.
This table shows figures for the East Midlands and London to compare the two locations.
The latest data indicates that rental demand is starting to slow down. Stats show that demand for rental homes is down 11% on last year. However, it is worth noting that this is still a third higher than the 5-year average.
The demand for rental properties has been high for several reasons, including the high mortgage interest rates since 2022, resulting in more people renting rather than buying their first property. Over the past two years, the number of overseas students has also substantially increased, and they usually choose to live in rental properties. However, the Zoopla Rental Index shows that demand started to slow down in the second half of 2023.
The view is that rental growth has peaked and will continue to slow down in 2024. The demand for rental properties will continue to go down, this is mainly due to affordability as the price of rent has gone up so much in the last few years. The high-interest rates are still impacting landlords, resulting in an overall lack of supply.
We hope you found this summary useful; we will keep you updated on any changes as we go through this year. If you would like to discuss the financial aspects of managing your property portfolio, we can help you. In addition, we are working in partnership with Eddie Gray, an Independent Mortgage Advisor. He is part of our team in Ravenshead and can advise on buy-to-let mortgages and mortgage protection. If you want to get in touch, call 01623 490 120 or email This email address is being protected from spambots. You need JavaScript enabled to view it.
Sources of data
Hopkirk, N (2023) The cheapest places to rent a home in 2023. Zoopla
Donnell, R (2023) Rental Market Report: December 2023. Zoopla
Haidee is our Personal Tax Director and is a fully qualified tax adviser, having achieved the ATT qualification in 2006. Tax efficiency being her main concern. Specialising in taxation, Haidee provides clients with advice on personal tax, PAYE services, VAT and social security. She also provides guidance to new start-up businesses.
Call us today on01623 490120
or email info@watsonk.co.uk
When you first start a business, your focus is usually on attracting customers, generating sales and building a successful company. Few business owners spend much time thinking about how or when they will eventually leave the business.
More blog posts