Rising Rent Prices: How Landlords Are Cashing In on the UK Housing Shortage
Landlords are currently profiting significantly from soaring rental rates and tenants face a challenging housing market due to a shortage of available properties.
Grainger Group Leading the Way in Profitable Property Investment with Rental Rate Surges
To provide a snapshot of the situation, major property owners, such as Grainger, the UK's largest publicly traded rental landlord, are substantially increasing rental prices, describing it as a robust occupational market, which essentially means they are generating substantial profits. Student housing provider Unite also reports record demand, highlighting the growing pressure on the rental market.
Rising Rent Prices: A Year and a Half of Double-Digit Growth Presents Investment Opportunities
Rent prices have been going up significantly for a year and a half, with a consistent double-digit increase. This has hit the average renter hard, as their expenses have gone up by a substantial £2800 over the past three years. Unfortunately, things don't seem to be getting better, as new lease prices are predicted to rise by 9% in 2023. This ongoing increase in rent prices is a real problem for people trying to find affordable housing, highlighting the urgent need for solutions to make housing more affordable.
London Property Investment: Seizing Opportunities as Rental Rates Hit £2,627/Month
Regarding the numbers, renters outside of London are experiencing a 10% year-over-year increase, with an average monthly rent of £1,278. In London, the situation is even more staggering, with residents now paying an astonishing £2,627 per month, reflecting a 12.1% annual surge.
A Promising Sign for Property Investors in the Rental Market
The demand for rental properties has surged as well. Prior to the pandemic, landlords typically received around 8 inquiries per property. Currently, they are inundated with approximately 25 inquiries. Grainger, a key player, maintains a nearly full occupancy rate of 98.6% across its approximately 10,000 homes.
Moreover, Grainger's ambitious plans to construct 1,600 new homes by 2023, with an additional 6,000 in development, indicate that landlords continue to ride the high wave of rent increases, with no sign of it subsiding in the near future.
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