Demand for Private Rented Accommodation at Five Year High
Demand for private rental accommodation has hit a five year high, according to research by the NRLA.
The demand for properties to rent had increased by 8% in Q2 2021 compared to Q1 2021, reaching the highest levels in five years, following the easing of the COVID restrictions and the UK economy bouncing back, with the UK economy seeing 4.8% growth in Q2.
Regional Variations in Rental Demand
Of the landlords surveyed, there is a clear sign of regional variation in the levels of demand reported:
- 60% of landlords in Yorkshire and the Humber, Wales, the South West and the South East reported an increase in demand
- 15% of landlords in Central London reported an increase in rental demand
There has been increasing numbers of tenants leaving central London with the flexibility of working from home, or, hybrid WFG schemes offered by many companies adapting to the “new normal”. London was the only region of the UK to see rents decrease in July 2021, according to official data from the NRLA.
Impact of COVID on Landlords
COVID has impacted residential landlords, with tenants at the start of the pandemic requesting rent deferrals, or, decrease, etc., but the impact in some areas is greater than in others:
- 81% in Outer London
- 78% in Central London
- Less than 49% in Yorkshire & the Humber
With the return to normality, it is still unclear if London will still see a continued decline in demand, causing downward pressure on rents.
Is UK Property Still a Good Investment?
We firmly believe that investing into the UK property market is a great method of wealth generation and preservation, with record low interest rates, 21% increase in property prices in the 5-years to 2025 and rental growth of up to 16.5% forecast.
With a 21% increase in demand year-on-year from buy-to-let property investors, it is a great signal that investing in a rental property is still a great opportunity. Regency Invest specialise in areas where high price and rental growth are forecast will do exceptionally well, helping property investors do just this, by securing below market value property and excellent buyer incentives for developments that are that are under construction.
Expert UK Property Investment
Speak with one our advisors today by completing our quick and easy 60-second questionnaire and we will be in contact with a variety of options that meet your investment criteria.
Explore our range of buy-to-let property investment opportunities in the North West of England where prices are forecast to see price increases of 28% by 2025:
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