The tenant’s dilemma: Steep rent rises and no property ladder in sight

The tenant’s dilemma: Steep rent rises and no property ladder in sight

Over the next five years, rents will rise steeply due to the Government’s decision to fight buy-to-let landlords at all costs, estate agencies are forecasting.

Londoners will face a 25% increase in rents over the next five years, Savills has said. Across the rest of the country, renters won’t do an awful lot better as they may face a predicted increase of 19%.

UK housing market to remain strong through Brexit

Rental growth will – by far – oustrip house price growth due to Brexit uncertainty, the estate agent warned.

“The rental growth is largely driven by the mismatch between supply and demand,” said Lucian Cook, director of residential research.

JLL, yet another group of estate agents, predicted an increase of 17.6% across the country over the next five years, with London’s rents rising by 19.9% over the same period of time.

Savills explained that, according to their research, the number of mortgaged buy-to-let landlords purchasing new homes is set to drop by a third (to 80,000) before recovering slightly to 90,000 by 2021.

Greedy sellers keep property on the market for an extra month, especially in London

Annually, house prices increased by 8% in August across all of the UK, and by 12.1% in London, data from the Office for National Statistics showed. For 2017, however, Savills predicts a flattening of prices in both the capital and Britain overall.

“We think sentiment will be affected as there is more of a realisation of what Brexit means for earnings, for the economy and for employment,” Mr Cook said.

Whilst different agencies predict different levels of growth and weigh the influence Brexit will have on the property market in the coming years, the overall sentiment remains the same; a slowdown of growth and then a slow but sturdy recovery.

Self-certified Sophisticated Investor

Please read

I declare that I am a self-certified sophisticated investor for the purposes of the restriction on promotion of non-mainstream pooled investments. I understand that this means:

I am a self-certified sophisticated investor because at least one of the following applies:

I accept that the investments to which the promotions will relate may expose me to a significant risk of losing all of the money or other property invested. I am aware that it is open to me seek advice from someone who specialises in advising on non-mainstream pooled investments.

High Net Worth Investor

Please read

I make this statement so that I can receive promotional communications which are exempt from the restriction on promotion of non-mainstream pooled investments. The exemption relates to certified high net worth investors and I declare that I qualify as such because at least one of the following applies to me:


Sign up for first access to new developments and exclusive property investment opportunities.

We send limited and targeted emails on new launches and exclusive deals which best fit your areas. We are trusted by over 30,000 active buyers as their source for new stock.

  • New property developments
  • Professional market reports
  • Property deal alerts
  • Development updates
Manchester property investment


Receive trending news straight to your inbox and stay up to date on all of the property market trends and advice.

Established since 2005 we are a leading voice of authority and commentary on the UK property market. Our news is trusted by Apple News & Google News.

  • UK housing market
  • Mortgage & money
  • Buy-to-let landlords
  • Guides & advice

Talk to us

Speak to our UK property experts today:


+44 (0) 333 123 0320

Open from 9am-6pm GMT


+852 6699 9008

Open from 9am-6pm HKT