The most recent Rightmove rental market update highlights the exceptional demand for rental property, which is driving up rents and yields for landlords. As an average across the UK (excluding London), average asking rents have hit £1,068 pcm. This is an increase of almost 10% since the same time last year and is 13% higher than before the pandemic.
In the North East, the average rent is £718pcm, which is 8.4% higher than the same time last year. The North East is also currently offering landlords the best rental yield in the country, at 7.9% against a national average 4.86%.
The rate at which rents are rising is at a 13-year high, while demand has soared by 76% in early 2022. Unfortunately, the heightened demand in the rental market is not being matched by an increase in supply. In fact, the number of homes available in January was 39% lower than is typical for the start of the year.
Lorna White, Head of Lettings, confirms “The current buoyancy is being driven by low supply, some landlords have chosen to sell given how strong the sales market has been in the last couple of years. The number of existing tenants moving is also lower, as people choose to stay put in an uncertain market. This means that for tenants who have to, or want to move, there is significantly greater competition for the rental properties that are available, driving up the rents that landlords can demand.”
Going forward, rents are expected to rise by 4.5% across the UK excluding London in 2022, and by 3.5% in the capital.
George F. White has seen this demand first hand, with dozens of enquiries for each property that comes on the market. It is an ideal time for landlords to expand their rental portfolio, or to become a first-time landlord and be guided through the process by us.
Please call our team on 0333 920 2220 if you would like to have a chat or need any specific advice.