Rental Demand in the UK Soars
Rental demand in certain parts of the UK has been considered high for many years now, particularly in areas where students and young professionals make up a large portion of the population.
In 2021 and 2023, however, figures have revealed that UK rental demand is skyrocketing to new levels, and rental properties are becoming tenanted faster than they ever have before.
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The Average Time to Let Out Properties Is Decreasing
In April 2019, the length of time that it took before a rental property was let out stood at an average of 31.9 days.
In April 2021, figures found that the average time it takes for a property to be tenanted hit a record of just 8.9 days.
This means that, on average, properties put on the rental market are being listed for less than 10 days before being snapped up by prospective tenants.
Despite slightly weaker demand in May 2023, the number of new sales agreed was 11% higher than the 5-year average for the same period.
Within two years, rental demand has risen so much that the time it takes for a property to be fully tenanted has been cut down by an average of 23 days.
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What’s Causing This Rental Demand?
This rental market boom in the UK can be explained by a lack of supply for rental accommodation.
There’s a noticeable imbalance between supply and demand in the UK. As of April 2021, around 45% fewer properties were available to rent out than in 2019.
Since the Covid-19 pandemic began, many renters and buyers have been reconsidering what they want from their living environment and opting to find a new home.
Properties with more space, a garden or balcony, and access to amenities like transport links and parks and green space became more in-demand.
This has helped fuel the growing demand levels for rental properties that fit these criteria in the UK. As lockdown restrictions continued to ease across the country throughout this past year, tenant demand has risen further in city-centre locations and commuter zones.
According to Rightmove and as reported by BBC, commuter towns, city suburbs, and coastal areas have recorded some of the most significant rent rises in the past year.
However, rents in London as of July 2021 were found to be 6.8% lower than they were in the previous year.
This could be due to the rise in remote working. With many employees now working fully or partly remotely, renting properties on the outskirts of a city like London is more appealing.
This allows tenants to cut down their rental costs and easily commute to and from the city when needed.
Some of the most popular commuter towns near London right now are Luton and Slough, which allow residents to reach central London in minutes.
As a result, Luton property investment presents one of the most lucrative options for property investors in 2021 and beyond.
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Ready to Invest in UK Property?
If you’re looking to take advantage of this UK rental demand and invest in buy-to-let property in 2023, take a look at our current property investment opportunities.
Right now, we have opportunities in Slough, Luton, Birmingham, Liverpool, and Manchester. Our properties are stylish, well-designed, and well-located, with attractive facilities to appeal to the UK’s thriving rental market.
Chat to an agent today to register your interest, or give us a call via the contact details on our contact us page. Read another of our property news articles to learn how high demand for new builds is helping boost rental yields for investors in the UK.