Friends who follow British real estate market may know that 2023 will be a difficult year for renters in the UK. The rent of new rental houses in the UK has been at at least 20 consecutive Consistently rising 10% or more every month.
So, what will happen in the British real estate rental market in 2023? The British real estate platform Zoopla has released relevant information, let's take a look.
In 2023, the number of newly rented houses in various regions of the UK Rental growth has basically remained above double digits.Among them, rents in Scotland grew rapidly, reaching 12.7%.
Demand for rental properties remained strong, 51% above the five-year average for most of the year. A shortage of rental properties and lackluster supply growth are pushing prices higher.
In addition, rising mortgage loan costs have also affected the rental market in two ways:
Potential first-time home buyers are Staying in rental homes longer, waiting for the time when mortgage rates start falling again.# {27}
Over the past decade, average rent as a percentage of gross income has fluctuated between 25% and 28%, with an average of approximately 27.2%.
However, the rent- to-income ratio over the past 20 months reached 28.4%, meaning rental affordability is at its lowest level in more than a decade.
Levels of home construction and net new investment by private landlords are falling and will remain weak into 2024, mainly due to rising borrowing costs.
