The UK's private rented sector is tipped to grow by a further one million households by 2018 and rents are expected to rise by 21 per cent over the next five years.
Watch for the rollout! ‘The capital has been the strongest performing region of the UK since mid 2005, during which period prices have risen by 37 per cent, compared to just eight per cent across the country as a whole. As confidence improves, investors are likely to look to markets beyond London that offer better relative value, though it will be later in the cycle before the north feels this benefit.’
Rents - an update
According to the latest index, rents were up 1 per cent month-on-month, September to October, and 11 per cent annually to the end of October 2013. If you like averages, the average rent is now £785 per month and that represents 41 per cent of the average monthly wage of £1,937.
We have seen an unprecedented rise in rents over the last month, with tenants now giving up 41 per cent of their monthly pay packet in rent. The shortage of rental property is particularly acute in many cities with a record 11 per cent monthly decrease in supply coupled with a 2 per cent increase in rental applications.
Across the board whether it is in the sales or rental market there is a universal need for more properties. Competition for houses will continue to impact on affordability and squeeze household budgets across the country for the foreseeable future.
In order to maximise this evolving market it's important to take advise from property experts, call David McKnight at Martin & Co Derby on 01332 650068 for up to date information on the housing situation in Derby, options regarding building a property portfolio and advise on growing rental income.