In recent months, rising rents in the UK have been making headlines. So what will happen to the UK rental market in 2023? What are the specific performances?Lan Shajun has researched and compiled some relevant information. Friends who plan to buy and rent a house in the UK can take a look together.
#{12 }On the one hand, it is obvious that the transaction volume of investment properties is less than in the past.
#{26 } In the first seven months of this year, 11% of properties sold in the UK were by investors Purchases are well below the 16% level in the first seven months of 2015, when new tax and regulatory reforms were introduced, reducing profitability. For many landlords at the time, buying houses was basically for renting.
The biggest fall in investment property sales has been in the south of England, the most expensive market, where Yields tend to be lower.In London, the region with the lowest yields in England and Wales, the share has fallen from 17% between January and July 2015 to 10 % in the same period this year.
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Declining investor purchase rates and increased landlord listings mean there is less inventory available for tenants.
Overall, there were more homes available for rent in the UK in July than at the same time two years ago A reduction of 43%.
Supply issues are compounded by rising costs for landlords, which has led to rent As housing prices rise and competition for available rentals increases, more and more renters are paying large amounts of upfront rent when they move to give themselves an advantage over landlords in finding the space they want.
In the first seven months of 2023, 11.1% of tenants have paid at least three months of rent in advance. This data breaks This is higher than the previous record of 7.5% ten years ago.
The insufficient supply of new homes and the revival of tourism have also caused some landlords to withdraw from the long-term rental market. Converting houses into short-term rentals such as Airbnb will reduce the number of houses available for long-term rentals, forcing tenants to bid for rent, and rents will naturally rise.
#{ 101} Last month, the average length of time a house was rented out in the UK was 24 sky. This is slightly higher than the average of 23 days in July 2023, indicating that the market's enthusiasm continues. However, this is still much faster than the 33 days it took for an average home to rent in July 2021.
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All in all, the rental market shows few signs of returning to pre-pandemic times, when the average annual rental growth rate was only 1%-3%. Indeed, supply issues coupled with rising landlord costs will only put further pressure on rents for the foreseeable.#{ 8}
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34% of homes sold across the UK so far this year were purchased by cash buyers , which is the highest ratio since 2017.But the growth was driven primarily by higher loan rates, followed by a hot rental market that attracted cash buyers.
#{ 30}The proportion of homes purchased with cash increased by 2% compared with 2022, with lower interest rates increased by 4% in 2021.51% of properties under £100,000 were purchased with cash this year, a record high, but the growth of cash buyers is also evident at the top end of the market.
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So far, 40% of homes worth between £500,000 and £1 million have been bought with cash, compared with The 2022 figure increased by 7%. For properties worth more than £1 million, the share bought with cash increased by 5% to 35%.#{ 51}
Meanwhile, 16% of sales in the north of England in the first seven months of 2023 came from Investment customers.This is on par with 2016 levels and with interest rates so high right now, the higher yields in the cheaper North West are more attractive and it's difficult to see this buying pattern from investors until mortgage rates fall significantly A reversal occurs.# {59}
If you are looking for a residential project with low budget and high rent, or if you want to study abroad or invest If you have any needs, please feel free to contact Lansha Real Estate Consultants for professional consultation.
