This is a summary of the UK Rental Report produced by Hometrack in March 2024. Some key headlines below are useful for landlords and property investors.
UK Rental Inflation
The UK rental inflation rate is now 7.8%, the lowest it has been for the past two years. The average rent is now £1,223 per month.
Demand for rented properties has fallen by a fifth. This is due to several factors, including the fact that mortgage interest rates have come down, and first-time buyers are able to consider buying instead of renting.
Private landlords' investment in properties is still low. Although the supply and demand imbalance is reducing, there is still more demand for properties than are currently available.
The table shows the average rent in several regions and cities (January 2024)
Analysis of average rents by local authority reveals that over half of rented homes (51%) are now in markets with average rents of over £1,000 per month - almost double the level five years ago.
Other changes within the rental sector are:
- There has been corporate and institutional investment into new ‘build to rent’ homes across the UK. These are usually in the city centres aimed at students and young professionals.
- Rent affordability remains high this year. High demand and high-interest rates continue to push up rent for new lets faster than earnings. The best way to improve affordability is to boost rental supply.
We hope you found this helpful update. We have tax specialists who work with landlords and property investors. If you would like some advice, then please do contact us by calling 01623 490 120 or email