Rental market predictions for 2022 Rental market predictions for 2022

Rental market predictions for 2022

Published in Magazine on 10 January 2022 by our Marketing Team

The pandemic has influenced rental demand and opportunities across the country, but what does this mean for tenants and landlords in 2022?
 
Changing demand and supply
 
The last two years have witnessed a boom in house prices, with the average property in October 2021 commanding £24,000 more than it did a year previously.

* This dramatic rise has forced many potential first-time buyers to remain in rental accommodation for longer.
 
UK rental prices, in turn, increased by 8.6% between November 2020–21. ** Despite this, Zoopla’s recent market report shows that affordability remains roughly the same, with 37% of a single tenant’s income spent on rent.
 
However, some regions have been significantly affected as workers from more populated areas retreated to the countryside, drying up an already holiday-centric rental market. This has spiked demand in rural heartlands such as the South West, which also contends with lower wages.
 
What will 2022 bring?
 
Zoopla also reported that overall demand for rental homes has increased by 43% while supply has dropped by the same amount, based on a five-year average. Thanks to fluctuating movement patterns and remote working, renting is likely to remain a problem in places where affordable rental stock is already thin on the ground.
 
The pressure on rural hotspots may ease now workers and students are being encouraged back into urban centres, but this also means an uptick in city prices.
 
While London’s rental prices are still lower than pre-pandemic levels, we can expect this to increase as supply dips in the coming months. Zoopla’s data shows there has likewise been a 60% hike in demand in Birmingham.
 
Alongside underinvestment in social housing and fewer landlords, the pandemic has created an unbalanced situation that’s likely to increase rents by 4.5% in the UK and 3.5% in London.***
 
The good news? Now is a great time for landlords to invest in quality housing to make a strong return while easing pressure on the rental market – a win for tenants too.
 
Call our property experts today to have your property valued for the lettings market.
 
*According to recent data from the UK House Price Index
**Based on the HomeLet Rental Index
***According to Zoopla’s November 2021 Rental Market Report

This article was originally published by BriefYourMarket and is reproduced here with their permission.

For more company news and insights from Pygott & Crone, click here

Members of the Relocation Agent Network

Part of a network of agents

We work with other trusted estate agents across the nation

Latest news

A landlord’s essential winter checklist
Magazine | 6 December 2022

A landlord’s essential winter checklist

Amidst all the hustle and bustle of Christmas preparation, the holiday season is really about taking a much-needed break from everyday business to spend time with loved ones.

Average rents continue to rise across the UK
Magazine | 6 December 2022

Average rents continue to rise across the UK

In the fallout from the Bank of England’s base rate rising far above the waterline at 3%, mortgage rates and rents continue to rise in line with inflation, and the domino effect of the economic climate becomes ever more apparent in today’s housing market.

Demand on the rise for energy-efficient homes
Magazine | 6 December 2022

Demand on the rise for energy-efficient homes

Santander’s Buying into the Green Homes Revolution Report has revealed that nine in ten estate agents have acknowledged that demand is rising among homebuyers for properties with higher energy efficiency ratings.

Deposit-friendly ways to decorate your rental home this Christmas
Magazine | 6 December 2022

Deposit-friendly ways to decorate your rental home this Christmas

As a tenant, you’re probably used to demonstrating a good amount of self-restraint when it comes to decorating your home.

Chat live

Chat live with a member of staff

Please provide your name and email address to continue.

Cookies

We use some essential cookies to make our website work; and we use some other cookies to help us improve our website without identifying you. You can accept all cookies or change your settings below.

For an explanation of cookies and how we use them, see our cookie policy here (opens in new tab). Below you can choose to enable non-essential cookies.

These are anonymous and help us understand how our website is used.