RENTAL HOME FORECAST - PART 2

UK RENTAL HOME FORECAST 2024 - 2025

PART 2

Hamptons International provides a similar outlook to our Part 1 summary, expecting rental growth to moderate in 2025. Their analysis suggests that rental growth will be at 5.0% in 2023 and 2024, driven primarily by London and the South East, before moderating to 4.0% in 2025.

The moderation is attributed to the cost of living squeeze on tenants’ salaries, which will likely constrain rental rises. Despite these increases, rental yields are expected to move upwards throughout the forecast period, reflecting the combination of weaker price growth and rising rents​ (Hamptons)​.

RWinvest, citing Savills, also forecasts a near-record 6% increase in average UK rent in 2024 due to the ongoing supply and demand imbalance in the private rented sector. This continues a trend of significant rental growth seen in the years following the start of the pandemic in March 2020, with rents in the UK having risen by 26% since then. The forecast anticipates that after 2024, the growth rate might level off as buyer activity in the housing market resumes to higher levels, potentially increasing the supply of rental properties and stabilising the market​ (RWinvest)​.

Overall, while the UK rental market has experienced substantial growth in recent years, forecasts for 2025 suggest a moderation in rental growth as the market begins to stabilis #PropertyMarket #InvestmentOpportunities #RENT #BTR #BUILT-TO-RENT #PROPERTYMAINTENANCE #PROPERTY #PROPERTYMANAGEMENT #MULTIFAMILY e. The continued strong demand for rental properties, coupled with a supply deficit, has been a significant driver of rental value increases, but these are expected to slow as the balance between supply and demand starts to improve.