Annual rental inflation in the UK is continuing to reach double-digit figures according to Zoopla’s latest UK Rental Market Report, with the current average annual rental inflation for new lets in the UK reaching +10.4% in June, and the market showing no sign of slowing down as we enter the busier summer period when demand typically increases by up to 40%.
According to Zoopla’s latest UK Rental Market Report, annual rental inflation in the UK has been consecutively running in double digits and June is no different – with this being the 15th consecutive month the market has seen the average annual rental inflation reach over +10%. There is also reportedly no sign of the supply and demand imbalance settling, especially since we are about to enter the market’s busiest period of the year over the summer.
Rents have also reportedly grown faster over the last 21 months than the average earnings over the same period, meaning that rental costs have reached the highest proportion of gross earnings in over a decade, with nowhere higher than the capital. The percentage of gross earnings being spent on rent in London is currently averaging at 40%, compared to the rest of the country’s average of 28%, which is subsequently expected to detrimentally impact the pace of rental growth in the capital over the next year.
“The level of homes for rent remains stuck 20-40% below pre-pandemic levels in most regions. This means more renters chasing fewer homes, adding extra impetus to rental inflation.” Zoopla’s UK Rental Market Report.‘‘
While the average annual rental inflation in the UK is currently sitting at +10.4%, rental inflation in Manchester has increased by a staggering +13.0% – +2.6% higher than the average, and higher than any other English city – with other investment cities such as Liverpool, Nottingham, and Birmingham achieving rental inflation levels of +8.5%, 9.3%, and 9.8% respectively.
At Beech Holdings we have continued to see incredible demand for our rental properties over the last two years, with the number of enquiries being received by our in-house lettings team, Manchester Apartments, increasing by +433% in just the last 18 months, with a specific focus on apartments that provide a utilities package, that are close to the universities, and have on-site amenities included in their rent.
That’s why we as a business decided to create a brand-new approach to residential living in Manchester. Welcome to City Co-Living.
City Co-Living MediaCity has been specifically designed to provide the modern renter with what they are looking for in the rental market – luxurious, private apartments in a great location, with a wide range of on-site amenities that they can use as an extension of their own home.