Your 2024 rental market round-up
For property investors, strategy is key and usually starts with contemplation.
Examining the year behind us can help you to develop your future plans. Whether you’re a seasoned landlord or a potential investor, here are some of the key takeaways from 2024:
Rental growth
In the 12 months to August 2024, average rents increased by 8.4% in the UK, marking a period of steady growth for the market.* This upward trend reflects a surge in tenant demand. With a growing population and ongoing challenges in homeownership affordability, more individuals are opting to rent, intensifying competition for available rental properties. The strong rental growth may continue as supply remains constrained in many regions, making this a key trend for both tenants and landlords alike.
Interest rates
On October 3rd, 2024, the Bank of England’s base rate fell to 5%. This was a highly-anticipated decrease from the previous rate of 5.25%, which was the highest level in 16 years.**
The base rate is crucial as it influences the borrowing costs for banks and lenders, which then impacts interest rates on a wide range of financial products, including mortgages, loans, and personal credit.
Homebuyers and property investors are particularly sensitive to these changes, as mortgage rates typically move in line with base rate adjustments. With the base rate falling rather than rising, securing a mortgage has become more attainable this year.
Renters’ Rights Bill
Following the Conservative government’s decision to shelve the Renters’ Reform Bill, which had proposed extensive changes to the rental market, the Labour Party has committed to introducing new legislation through the Renters’ Rights Bill.
This reform is aimed at rebalancing the power dynamic between tenants and landlords, ensuring that renters have more stability in their living arrangements, while landlords have clearer legal frameworks to follow. As housing policies continue to evolve, both tenants and landlords will need to stay informed on how these legislative changes may impact the rental landscape.
Landlords needed
Despite gradual improvements in the overall supply of rental properties, the market remains strained. The number of available rental homes is still 20% below pre-pandemic levels***, creating a significant supply gap. This shortfall offers a prime opportunity for potential investors, as high demand combined with limited supply is likely to sustain rental price increases in many regions.
For new landlords or those looking to expand their portfolios, entering the market at this pivotal time could prove beneficial. With fewer homes available, renters face intense competition for properties, particularly in urban areas and regions experiencing population growth. This dynamic makes the rental sector an attractive option for investors seeking strong returns.
Need help managing your investment? Get in touch with our dedicated team today
ONS*
Bank of England**
Zoopla***
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
Latest news
Understanding rent reviews and increases
The Renters' Rights Act 2025 introduced a clear and structured framework for rent increases in England's private rented sector that every tenant should understand.
Mortgage rates and refinancing decisions
Mortgage rates continue to be one of the biggest considerations for homeowners, buyers and landlords planning their next move.
Price your home right: The foundation of success
Every detail in a property sale—from photography and listing descriptions to viewings and negotiations—operates within the framework created by the asking price.
First-time buyer essentials: What you need to know
First-time buyers accounted for approximately 36% of all mortgaged property purchases in the UK in 2025, making them the largest single group of buyers in the market.
