The pandemic has influenced rental demand and opportunities across the country, but what does this mean for tenants and landlords in 2022?
Changing demand and supply
UK rental prices increased by 8.6% between November 2020–21. ** Despite this, a recent market report shows that affordability remains roughly the same, with 37% of a single tenant’s income spent on rent.
What will 2022 bring?
It has also been reported that overall demand for rental homes has increased by 43% while supply has dropped by the same amount, based on a five-year average. This is a result of fluctuating movement patterns and remote working.*
Rental market activity is set to rise as workers and students are being encouraged back into urban centres, making city centres an attractive prospect for investors.
While London’s rental prices are still lower than pre-pandemic levels, we can expect this to increase as supply dips in the coming months. Data shows there has likewise been a 60% hike in demand in Birmingham.***
Now is a great time for landlords to invest in quality housing to make a strong return while easing pressure on the rental market – a win for tenants too.
Call our property experts today to have your property valued for the lettings market.
*According to recent data from the UK House Price Index
**Based on the HomeLet Rental Index
***According to Zoopla’s November 2021 Rental Market Report
