With lockdown easing and the property market beginning to recover, the latest rental index from HomeLet shows that rents are rising across the UK. According to HomeLet, the UK’s largest tenant referencing and specialist lettings insurance company, the average rent in the UK is now £965, an increase of 0.6% compared to the same period last year.
Whilst average monthly rents are performing well across the UK, this is not the case for London. Average rents in the capital currently sit at £1,611, down by 3.2% compared to this time last year. When London is excluded from the study, the average rent across the UK drops to £808, 1.4% higher than last year.
The UK’s top performing region for rental rises was the North West, recording a 6.5% increase as annual rent reached £773. Other strong performing areas included Yorkshire & Humberside (+4.5%), the South West (+2.5%) and Scotland (+1.9%).
Martin Totty, HomeLet’s chief executive, said of the rise: “July appeared to be yet another encouraging month for lettings – with a rise in rental prices across all of the twelve regions monitored compared to June – although the data does indicate a downward trend emerging YOY for those in the South East and Greater London.
“Demand for new tenancies is still strong, HomeLet received the same volume of property applications for tenant reference checks this month as the same month last year. That coupled with the steadily increasing rents is positive for the sector, but there’s naturally caution around what could happen over the coming months.
“HomeLet’s tenant reference data – which is also forward looking – is one of the few sources with access to large data sets underpinning robust regional trend data. It’ll be interesting to see what trends emerge, especially on the regional level and how these variations will affect both landlords and tenants across the country over the coming months.”
Buy to let opportunities in the North West
Rising rents are indicative of high rental demand and a healthy rental market overall. With high rental demand and a stamp duty holiday in place, now would be the perfect time for buy to let investors to get the most for their money when investing in the UK.
Due to vast commercial investment over the years, a strong job market and a rapidly growing population, rental demand is higher than ever in Manchester City Centre, making it a top choice for buy to let investment. Manchester has consequently ended up embracing the buy to let investment market, increasing property prices by 34% over the last 7 years. Approximately 30% of housing in Manchester is now in the private rental sector with rental yields up to 7.5%, making Manchester a lucrative choice for buy-to-let investors.
Manchester City Council have predicted that Manchester’s population is set to grow by 5,000 people per year by 2025, with demand for housing far outweighing supply. Luckily for the future tenants of Manchester, Beech Holdings have a number of new developments under construction in the city centre.
One of these developments available for investment is Beech Holdings’ flagship development, Ancoats Gardens. Situated in the ever-popular Ancoats neighbourhood, Ancoats Gardens is home to luxurious one, two and three-bedroomed apartments, a roof garden, private gym and shared social space. Due to its prime location and luxurious facilities, Ancoats Gardens will be in high demand from Manchester’s current and future residents.
If would like to find out more about Ancoats Gardens, get in touch and our team will guide you through the process.