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The UK Rental Situation

The housing market has seen huge changes and upheavals over the last couple of years, as people make new priorities in life and reassess their situation. We took a look at the UK rental situation.

Rent Continues To Rise.

The average cost of renting a home is close to £1,000 per month, thanks to rising demand.

Despite the increase in cost, rents account for an average of 37% of a single earner’s earnings before taxes. This is roughly in line with the 10-year average of 36%.
Across the UK, renters are currently paying £969 per month. According to a Zoopla analysis, this is £62 per month more than it was before the start of the pandemic.

The UK Rental Situation – How Big Are These Rises?

In the final three months of 2021, the rate of rent increases hit a 13-year high of 8.3 percent.

The average annual rent for people signing a new lease is now £744 more than it was before the outbreak.
Despite this, rents are just 12% more than they were five years ago. This is despite falling in several locations during the pandemic’s early phases.
Rents have grown in every region of the UK over the last year. London had the highest increase of 10.3%, while Scotland saw the lowest increase of 4.8 percent.

Rents in the capital, however, decreased during the pandemic and are now only £18 a month higher than they were in March 2020.

The UK Rental Situation – Demand.

The number of people seeking for a rental home has increased by 76 percent since the start of the year, compared to the same period between 2018 and 2021.

People are returning to the centres of big cities such as London, Manchester, Birmingham, Leeds, and Edinburgh, after the epidemic sparked increasing demand in larger commuter zones as tenants embraced the’search for space.

The UK Rental Situation – Supply.

Unfortunately, the rental market’s increased demand is not being met by an increase in supply.

In fact, the amount of available properties in January was 39% lower than usual for this time of year.
The mismatch between supply and demand is resulting in a fast-paced rental market with fierce competition, driving increasing rental costs.

Meanwhile, homes are being rented in just 14 days on average, down from three weeks in late 2020.

A drop in investment in the industry by buy-to-let landlords has resulted in a shortage of available rental houses.
Simultaneously, growing costs are causing many renters to stay put, thus restricting the number of rental homes available.

The Situation For Tenants.

The rental market is currently fast-paced, with fierce competition from other would-be renters.

As a result, you must be ready to act quickly to get a house. This is especially so if you are seeking in a city centre, where demand has increased. You can sign up for alerts from estate agents. They let you know when a property that meets your criteria becomes available, allowing you to keep ahead of the competition.

 

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