Rental values strengthening
The rental market across the UK has experienced mixed fortunes since it reopened its doors last June. Tenant demand is building but new instructions to the market remain muted. Pressure on stock is fuelling price growth in many areas.
The average rent in the UK is now £996 per month, up 2.9 percent on a year ago (Homelet). Excluding London, average rental values are £853 per month, up 6.2 percent. Rental value growth is strengthening as tenant demand builds against a backdrop of low supply. New instructions to the market were nine percent lower year-on-year over the first three months of 2021 (TwentyCi). Prime market rents are recovering, with an average rent of £2,953, just a 0.4 percent fall on a year ago. In London, despite an uptick in the volume of lets agreed to date in 2021, continued travel restrictions and an abundance of stock are still having an adverse effect. The average rent for a prime property across the capital is 7.5 percent lower than a year ago.
Priorities for renters or find a new property investment?
Close to one in every six households is in the private rented sector; the proportion in London is over one in four. As in the sales market, the COVID-19 pandemic has caused a shift in focus for many. Affordability, outside space and broadband connectivity are all more important to tenants when choosing their next property (Dataloft, Property Academy, 2020). As blended working patterns look set to be the norm for many, so too is space to work from home. With access to private outside space, and the size and layout of space being the top three design-based predictors of comfort in the home, landlords would be well advised to consider how best to present their properties.
Are you looking to make the most of your rental property investment or find a new investment? Fine & Country Lettings offer a range of services and prime industry knowledge and experience to manage your investment and lend advice. Get in touch with your local Fine & Country agent to find out more today.