rental demand

Rental demand has doubled in major UK cities says new report

Levels of rental demand continue to boom across the country, and the UK’s major cities are once again the most sought after destination for today’s tenants. 

The likes of London, Birmingham, Edinburgh, Manchester and Leeds have been highlighted as some of the key UK cities where rental growth has rebounded to impressive levels. In a new report published by Zoopla, appetite for central city locations in particular has actually doubled, with outer city areas lagging slightly behind.

Across the country, rental demand has seen its strongest growth in 13 years, says Zoopla. This even includes London, which witnessed its first rental growth in 16 months. As of the end of September, the cost of renting has risen by 4.6% year-on-year on average across the UK. When you take London out of the picture, this rises to 6% – a 14-year high.

Strongest areas for rental demand

On a city level, quarter-on-quarter rental growth in inner London reached an impressive 5% in Q3. The inner city of Birmingham followed close behind, with a surge of 4.6% since Q2. Edinburgh is next with top growth of 4.2%, followed by Manchester at 3.9% and Leeds at 3.6%. All of these cities are already hugely popular with renters and property investors alike, and the latest data demonstrates how demand is still increasing in these areas.

The areas with the highest rental demand are also the most affordable. The report shows that tenants are paying out around 37% of income, which is in-line with the five-year average.

The highest rental price increase was in the south-west, where rents climbed by 3.3% between June and September. On an annual basis, rents in the area have risen by 9%. Wales, the East and West Midlands, the north-east and the north-west have also experienced particularly strong growth.

Tenants snapping up properties

The average time it takes for an available property to be rented out was just 15 days as of September this year, according to Zoopla. The report also notes that there as been a shift in spending patterns, with demand increasing in the higher rental price brackets.

The report adds: “This will be a reflection of the rises in average rents seen over the last year in the UK excluding London, but also signals an increased demand for larger properties, with more space, echoing a key driver in the sales market at present.”

The future of renting

In terms of outlook, Zoopla expects these high levels of rental demand to largely continue. With supply levels remaining low, as well as more people than ever renting rather than owning homes, it could be a busy time ahead for landlords.

Zoopla’s analysis concludes: “There is more leeway for stronger rental growth in areas of the country where rents are relatively more affordable, suggesting that rents could rise above earnings outside the south of England, supporting rental growth across the UK excluding London at 6% in 2021 and 4.5% in 2022.”

BuyAssociation has a range of property investment opportunities available across the UK, with options to suit every investor. Browse some of our properties here, or get in touch for more information.

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:

aerial-view-uk-houses

STAY AHEAD OF THE MARKET

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
UK holiday let

FIRST FOR NEWS AND KNOWLEDGE.

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