Investors who own properties across the UK are experiencing rental income increasing at a faster rate than their property’s capital appreciation according to lettings platform, Goodlord, as rents continue to be driven by insatiable tenant demand across the UK that is continually outstripping supply.
Rental income is rising faster than capital appreciation in most of the UK’s cities according to the latest research from Goodlord, with the demand for rental properties soaring and outstripping the supply of available property across the country as the average rent being paid on properties now reaching £1,148 per month – 3.3% higher than last month.
Marking the sixth consecutive month where the average rent in the UK increased, every region in the country has recorded an increase in rents apart from the East Midlands, which recorded a fall of -1.08% month on month.
“We’ve now seen six consecutive months of price rises and we predict this to continue throughout the summer. The fairly sizable drop in void periods during June also reflects this intensification of demand, as tenants snap up properties as soon as they come on the market. “We’ll likely see prices and demand peaking as we hit the start of the academic year and, whilst things normally begin to cool down over the autumn and winter, if supply issues continue, we could see this pressure on rental stock continue, affecting all industry stakeholders.” Oli Sherlock, Director of Insurance at Goodlord.‘‘
Goodlord also reported a fall in the average length of void periods in England for the month, with an average fall in three days (-15%) from May’s 19 days to just 16 in June.
“The parts of the country that remain the best value for renters – and the only three regions to remain below the national average – are the North East (where rents are now £865pcm), the North West (£917pcm) and the West Midlands (£919pcm).” Goodlord.‘‘
At Beech Holdings, we have experienced a significant increase in demand for our rental properties by our in-house lettings team, Manchester Apartments, with nowhere increasing in demand more than our properties in Salford Quays – where our recently completed building Brookland House has maintained 100% occupancy and a 52% renewal rate since its completion.
The incredible level of tenant demand our in-house lettings team have experienced for this severely undersupplied area has informed our tenant-centric approach to development, allowing our development and architectural teams to create a brand-new residential offering in Salford Quays that will revolutionise the UK rental market.
City Co-Living MediaCity will provide Salford Quays with 120 high-quality, luxury apartments in a development centred around fostering community, combatting loneliness, and creating enjoyment with its wide range of on-site amenities available to residents as an extension of their own private homes within the building.
To learn more about City Co-Living MediaCity and understand how our new branded residential offering will revolutionise the modern way of renting, get in touch with our team today or contact them directly at +44 (0) 161 791 4600.