According to Zoopla’s quarterly UK Rental Market report, rental demand within city centres is rising, with demand from students, office workers, and international students outstripping the already limited supply.
Rental prices in the UK have risen by 16% in the last 12 months according to property website Zoopla, with the average time taken to let a property on the market now sitting at just 14 days. Whilst rents are increasing and demand remains high, the level of rental demand within city centres is growing exponentially as students, international students, and office workers continue to search for living accommodation closer to their places of work and study.
The rate of rental growth within city centres has gained momentum across all markets, with demand surging over the last six months and the number of available properties struggling to keep at pace with the demand for single occupancy homes. The average tenancy length has also been rising since 2017 and tenants are now staying in their property for 44% longer than previously recorded, rising from 52-week tenancies in 2017 to 75-week tenancies as of March 2022. The increase in tenancy length within the market corroborates the significant increase of ‘lifestyle renters’ the UK market is currently experiencing, as young professionals and students choose to live in more expensive, higher-end apartments for the longer term instead of saving to purchase their own homes.
As more young people choose to rent for the long-term and benefit from the flexible and sociable benefits of the rental market, the build-to-rent sector is seeing demand for amenity-led buildings rise exponentially, and this demand is expected to continue rising over the next decade.
To learn more about the UK rental market, and how you can capitalise on rising rental prices and the influx of lifestyle renters, get in touch with one of our expert property consultants today.