Despite uncertainty in the property sector, the plateauing of prices and the repercussions of the autumn mini-budget, many landlords are refusing to move from the housing market, remaining optimistic about the forthcoming year. The current rental market is set to remain stronger than ever, despite the average cost of renting a home in the UK sitting at around £1000 per month.
How much will it cost to rent a property in the UK?
It is estimated that around 4.5 million households are private renters in England, comprising of individuals, couples and families. The number renting in Scotland is around 350,000. Despite record growth in the cost of renting, the market does not show any sign of slowing anytime soon. According to the Office for National Statistics, the average cost of renting per month in England from April 2021 to March 2022 was just shy of £800. London renters paid almost £1,500 a month on average, with properties in more prestigious areas such as Kensington and Chelsea costing over £2,000.
Why does renting a property in the UK cost so much?
In the UK, there is a shortage of housing for first-time buyers or couples and families on lower incomes. Not enough properties have been created over the past few decades which puts pressure on the market as a whole. Furthermore, social housing units have been sold to the private sector via Right to Buy. These properties have also been knocked down, with the land used for other purposes.
Is the buyer’s market weak or strong?
With property prices set to fall around eight to ten per cent over the next year, this puts first-time buyers in a potentially better position. Whether you’re buying an apartment, a dream family home, or even an investment property, a home buyers report is invaluable as it can reveal much about the property, including whether it is structurally sound, offering more information that the basic valuation report required by a lender. Anyone considering moving home who wants more information can determine a home buyers report cost via professionals in the area, such as Sam Conveyancing.
Young professionals remain in rental market
This year many younger workers gave up hope of being able to get onto the property ladder and have cut spending on leisure, eating out and holidays to be able to afford the higher rents seen around the country. According to The Financial Times young professionals in London and the south-east are suffering from a sense of impending financial doom as they feel the cost-of-living crisis. With fewer companies able to provide pay rises, many professionals find themselves renting with colleagues or friends in shared properties.
Is the relationship between the landlord and tenant important?
Many landlords have built strong relationships with their tenants over the years, and they are keen to keep them, especially if they are a good renter and take care of the property. In some areas, favourable tenants are in short supply and a landlord may want to ensure the tenant remains in their property for an extended period of time. For this reason, they may work to ensure their monthly rental fee is competitive in the area. Overpricing can lead to a good tenant leaving, resulting in empty properties and a loss of income for the landlord.