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Rental Inflation Soars Amid Autumn Budget Expectations

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    Average Rental Prices Hit New Highs

    Rightmove recently published their latest Rental Trends Tracker, and the property portal has revealed that the average advertised rent for new properties coming to the market has hit a new quarterly record.

    According to their data, the average monthly rent outside London has hit £1344. This record-high marks a 5.2% rise compared to a year ago.

    London rents have also reached a new record, hitting £2694 a month on average – a 2.5% increase on the same time last year.

    These figures align with Rightmove’s end-of-year prediction for UK rental growth. They project that rents outside of London will grow by 5% throughout 2024, and London rents will increase by 3%.

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      Rental Demand Still Booming

      In terms of tenant demand, the average number of enquiries from potential tenants per property is down to 15 from 23 last year. However, this is still nearly double the pre-pandemic average of 8 in 2019.

      While the number of available properties has increased by 13% year-on-year, suggesting a slight easing in supply-demand pressures in the rental market, it’s worth noting that the available stock is still 27% below 2019 levels.

      The rental demand recorded also varies greatly by region and city. In a separate report, Rightmove found that 19 UK rental markets, including Salford, Liverpool, and Manchester, are still seeing upwards of 40 enquiries per available rental property.

      Salford, home of RWinvest’s latest off-plan property launch, West One, is one of the busiest markets in the country, with each rental property attracting an average of 47 enquiries. West One is designed to appeal to the modern renter with outstanding onsite facilities and apartments with EPC ratings of A, allowing investors to fully benefit from this booming rental market.

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      Landlords Anticipate Budget Changes

      According to Rightmove, some landlords anticipate changes to Capital Gains Tax in the soon-to-be-announced Autumn Budget and incorporate this into their investment strategy. They are also preparing for upcoming changes to EPC regulations. The new Government is proposing to change the minimum EPC rating required to rent out a property to C by 2030, up from the current minimum rating of E. A separate report found that 50% of landlords are concerned that the government will introduce costly charges for not meeting EPC requirements, and nearly a fifth of renters believe stricter energy efficiency regulations should be the top priority for the Government.

      In this rental report, Rightmove notes that measures from the government to help landlords with costs relating to energy efficiency upgrades will encourage more investors into the market to provide much-needed homes for tenants. In the current market, EPC anxieties have driven a trend for new-build investment in the buy-to-let world, as investors try to avoid the costly upgrades that an older property is likely to require as legislation changes in the future.

      Take a look at RWinvest’s available properties page to see some of the latest new-build investment opportunities on offer. For our developments, we target areas with high rental demand, such as Manchester and Liverpool.

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      Author

      Jessica Ferris

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      Jessica Ferris is a property writer at RWinvest, helping our readers stay ahead of property market trends with the latest news and statistics.

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