We work with a lot of landlords and property investors in the East Midlands and London, so we keep abreast with how the rental market is performing. Here is a recent update for November 2021 which will be of interest if you have properties that you rent.
Key points in the Zoopla Report (Published 16 November 2021)
- Strong rental demand in Q3 pushes rental growth to the highest level in 13 years
- UK rents are rising at +4.6% per annum, amid a doubling of demand in major city centres
- London rental growth swings back into positive territory after 16 months of falls, as offices and city life resumes
- Rental demand will remain higher than supply – the availability of properties to let is 43% below the five-year average
- Even with rental growth, affordability of rents across the UK remains in line with the five-year average, at 37% of income
- Rental growth in the UK excluding London is at +6%, and we expect this growth to ease to 4.5% by the end of 2022
- We expect London rental growth to be at 3.5% at the end of 2022
The research shows that it is a good time to invest in rental properties. There is an increased demand for rental homes and supply is still low. The graph below shows rental growth in more affordable areas.
As you can see from the graph rental growth in the East Midlands is now at 6.9% the average rent (PCM) is £691. London’s annual rental growth is lagging, and even though rents have become more affordable, it remains the least affordable rental market in the UK.
Despite the pandemic, the employment market remains relatively robust. The number of job vacancies is at a record high. This signal continued strong demand for rental property moving into 2022.
If you are a landlord or property investor in the East Midlands or London and would like some support with tax-related issues, please do contact us by calling 01623 490 120 or email