Record Rental Rises Hit the UK

A recent report by the Royal Institution of Chartered Surveyors has suggested that UK rents are expected to increase by a huge 15% over the next five years. There have been a number of factors that have led to increasing rent bills, with the rises affecting the whole of the country.

A combination of a historically undersupplied market and a sharp rise in the amount of UK renters has created the perfect conditions for rent rises. Though bad news for the growing number of renters, it’s great news for property investors who can expect to see rental yields continue to rise. Rent rises across the country mean that investors can make even more from buy to let property investments, and certain cities like London and Manchester are experiencing record population growth.

The demand for rental property in the UK has reached record levels, with 20% of UK households now living in private rented accommodation. A range of factors such as difficulty buying a first home, a multi-city lifestyle and the ‘generation rent’ mindset have all contributed to this increasing demand. The number of people living in rental accommodation has increased in most age ranges, showing a diversifying rental market. Population increases in UK cities are also leading to an increasingly competitive rental market, with more people than ever looking for rented accommodation.[Continue Reading…]