The rental market has been white-hot so far this year, with rent values growing by 9.9% in the last 12 months, reaching £1,068 a month, according to Rightmove’s Quarterly Trends Tracker. * This is the highest annual increase on record, and there is no sign of the surge stopping in 2022.
The Royal Institution of Chartered Surveyors’ latest index suggests that there will be no end to rent rises this year, due to a mismatch in supply and demand. The latest figures from the RICS latest Index shows that rental growth expectations rose further to a net balance of 57%, ** and rents are predicted to continue to rise this year.
With no signs of the supply and demand gap narrowing in 2022, property experts predict that asking rents will continue to climb by a further 5% this year**. The supply and demand imbalance is expected to continue until more rental options become available, which will continue to push rental values up, making now the ideal time to think about renting out a property.
Despite the ending of the stamp duty holiday at the end of September, the RCIS new buyer enquiries remained positive, showing strong signs of recovery. According to the most recent survey, "rents are expected to pick up firmly across all parts of the UK, both at the three- and 12-month horizons."
What Can Landlords Expect from the Rental Market This Year?
Zoopla’s latest House Price Index has forecasted another year of rental growth, fuelled by a tight supply of homes and strong employment rates. ***
So, what can we expect to see from the rental market?
By the end of 2022, rents are predicted to climb another 4.5% in the UK, and London is expected to exceed its pre-pandemic figures (3.5%), showing strong signs of a recovering market. Experts predict that now is a great time to start investing in the buy-to-let sector.
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*According to Rightmove’s Quarterly Rental Trends Tracker
** According to the RICS latest index
*** According to Zoopla’s latest House Price Index