Saturday, February 24, 2024

Rise in rent and demand for properties in the UK

There has been a boost for property in the UK as rents and demand for properties rises

In a welcome news for landlords who have been faced with a number of legislation changes and an uncertain market, there has been a boost for property in the UK as there has been a hike in rent and demand for properties in the country, new data from ARLA Propertymark has revealed. This rise in demand for rental properties as well as monthly rents has come in as a big relief to landlords who have faced uncertainties of the market that have impacted their income.

According to figures from the industry body, the number of prospective tenants registered per lettings agency branch increased by 8 per cent in March as the average number of tenants increased from 61 in February to 66 in March. The data also revealed that there was a rise in the number of tenants experiencing rent increases. In highest figures since September last year when 27 per cent of landlords put rent costs up for tenants, 23 per cent tenants experienced rising rents in March this year.

According to another research earlier this month, the average rent across the UK was £761, which excluded London, where the average rent was £1,879.

The findings by buy-to-let mortgage lender Landbay found that the upward trend during the past five years for year-on year rents in March this year continued as rents rose 1.21 per cent year-on-year for the whole of the country, excluding London.

Chief executive of Landbay, John Goodall said that rents have continued to rise over the last five years, increasing by 9 per cent across the UK since March 2013 and by 7 per cent in London.

Chief executive of ARLA Propertymark, David Cox said that while the market stability looks positive on the surface, it could be masking the real issues. Rent hikes suggest landlords are trying to recoup losses caused by the recent legislative changes – including the recent energy efficiency deadline.

Cox added that for the last two decades, successive Governments have passed significant amounts of complex legislation for landlords, none of which have been properly policed or adequately enforced – but most of which cost decent landlords a lot of money.

He said that this is why they are so supportive of the Government’s proposals to crack down on rogue agents and more recently, plans to confiscate properties from criminal landlords. The announcements make a sensible shift towards focusing on the root cause of the issues affecting the sector, rather than trying to find solutions to individual problems. This, coupled with greater rental stock is the key to fixing Britain’s broken rental sector.

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