Demand for rental properties

For many, the cost of living and rising mortgage rates have made homeownership a less viable option and so renting has become a more feasible alternative. Now with some landlords choosing to exit the market, the number of rental properties available has become constrained, creating more competition among tenants who jostle over limited supply.

According to Savills data, there is an average of 6.1 applicants per available property across the country. This demand allows landlords to secure tenants more easily and minimise void periods.

Longer-term security

Renting out a property comes with a range of long-term benefits for landlords. When managed correctly, a property can provide a good source of income that could be used as a pension or as an asset for family members. More generally speaking, property prices have increased and so a long-term landlord may also benefit from capital appreciation when they come to sell. 

Accidental landlords

Homeowners who fall into the sector because they find themselves in the unexpected position of having a property which could be let – so-called accidental landlords – may feel daunted at first. But good quality property could let well, appealing to tenants who like to ‘try before they buy’ in order to explore a new area or style of living.

Rising rents

Although rental values have slowed since the pandemic, affordability and stock constraints offer the opportunity for rental increases. According to our rental forecast, UK rental growth in the mainstream market will reach +17.6% in the five years to 2029 while the prime regional markets will reach +12.6% over the same period. In prime central London, rental values are also set to increase by 12.6%, with 15.4% in outer prime London.

Further information

Contact Amelia Brown or Alexandra Bloodworth

For more information about letting your property – and what it may be worth – head to our property page.