According to the latest research published by Zoopla, the average rental price within the UK has risen to over £1,000 PCM, an additional £62 PCM than at the start of the pandemic.
Rental prices rose by an average of 8.3% across the country in Q4 2021 alone, with tenants now paying an additional average annual cost of £744 compared to the start of the pandemic, and rental price growth reaching a 13-year high. Rental demand also increased by a staggering 76% in January on the previous month, the highest recorded rental demand increase over the last five years. However, the supply of rental properties was recorded at 39% below the typical stock level for the beginning of the year, meaning there are now an average of 13 tenants for every 1 property on the market. Whilst rental demand continues to outweigh supply, rental growth across the country will continue to rise as properties are currently only on the market for an average of 14 days, and rental demand shows no signs of slowing as the year progresses.
“Rental demand has risen strongly amid increased activity in city centres, but supply is still constrained, leading to the fastest growth in rents in Q4 than at any time over the last 13 years” Gráinne Gilmore, Head of Research at Zoopla.
Demand for rental properties within city centre locations has continued to rise, most prominently in regional cities including Manchester, Birmingham, and Leeds, largely driven by pent up demand from office workers, international residents, students who are looking to live in the city centre, and a chronic shortage of supply. Manchester’s rental market has seen a staggering annual average increase of 9.5% in rental demand year on year, with Manchester now experiencing a period of only 12 days between listing a property for rent and having a tenant secured – with the national average being 14 days.