Expat Investing in UK Property.
Rents have risen sharply over the last year and are expected to continue moving upwards. A result of supply and demand pressures persisting.
Annual rental growth is now 13.3%, according to the latest UK Rental Market Report, outpacing earnings growth in all regions and countries of the UK.
The property portal said that average rents have risen by £125 a month over the last year to £1,109.
Rents are rising quickly across all parts of the UK, ranging from 7.6% in the Northeast to almost 18% in London.
Rents are being pushed up by the severe and chronic undersupply of homes to rent, according to a recent report.
The rental market faces an imbalance of supply and demand that has led to a surge in rents. The stock of homes for rent remains almost half the average compared to the last five years.
At the same time, private landlords continue to sell their homes in the face of significant tax and regulatory changes.
Demand for two-bed flats has risen dramatically which is likely due to rising energy prices. The gas needed to heat a purpose-built flat is 40% lower than that for a three-bed house.
Latest figures clearly show that the chronic undersupply of rental homes shows no sign of changing, which means that rents are expected to continue to grow at above average rates into 2024.
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