As property investors seek promising avenues for growth, Zero Deposit's analysis of historic rental data from the Office for National Statistics offers valuable insights into the trajectory of the rental market across England. This forecast sheds light on the potential for significant rental increases, presenting an opportune moment for property investors to capitalize on burgeoning demand.
Current Landscape:
Presently, the average monthly rent for tenants across England stands at £994, marking a five percent increase over the past year and a substantial 37 percent climb since 2013. Notably, London boasts the highest average rental cost at £1,873 per month, reflecting a 12 percent surge – equivalent to £201 per month – within just one year (2022 vs. 2023). These upward trends in rental costs are evident across all regions of England, exacerbating financial pressures on renters nationwide.
Rental Market Forecast:
Drawing from historical trends, Zero Deposit forecasts a potential surge in average rents across England by 2030. Projections indicate a 16 percent increase, elevating the average monthly rent to £1,150 – a noteworthy rise of £156. In London, despite retaining its status as the least affordable rental market, a forecasted 12 percent increase is expected to push the average monthly rent to £2,107, adding £234 to renters' costs.
The East Midlands Emerges:
Among all regions, the East Midlands emerges as a focal point for substantial rental growth, with projections indicating a staggering 41 percent increase by 2030. This significant jump, equating to £307 per month, underscores the region's potential for robust rental market expansion. The anticipated surge in rental costs in the East Midlands is attributed to a decline in Private Rented Sector (PRS) stock since 2018, highlighting the supply-demand dynamics shaping the region's rental landscape.
Regional Insights:
Beyond the East Midlands, other regions also forecast notable rental increases. The South West, witnessing a reduction in PRS stock, anticipates a 39 percent jump in rental costs by 2030, translating to an additional £382 per month. Similarly, the East of England projects a significant 29 percent increase, amounting to £291 per month. Even Yorkshire and the Humber, while experiencing a more marginal increase, foresees a nine percent rise in rents, adding £66 per month to existing costs.
In Summary:
As rental demand continues to surge across the UK, driven by evolving socio-economic factors and housing market dynamics, Magnate Assets recognizes the immense potential for property investors to capitalize on this trend. The projected rental increases present lucrative opportunities for investors seeking to expand their portfolios and achieve sustained growth in the ever-dynamic property market landscape. Stay tuned for more updates and insights on maximizing your investment potential with Magnate Assets.