Property expert Abi Oniru explains the concept of ‘Rent to Rent’
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The property market has been in turmoil over the past 18 months. House prices have soared and renters have rushed to move out of cities. The rise of remote working has allowed workers to adopt more flexible working arrangements. With many employers now offering permanent work from home options, will Brits make the switch back to city life?
The property experts weigh in.
Will rents increase?
Andy Halstead, HomeLet & Let Alliance Chief Executive Officer, told Express.co.uk: “In the Capital, rents are now just 1.2 percent down on pre-pandemic levels from July 2019, with boroughs in central and inner London showing growth in achieved rental values.”
However, he warned it wont stay that way for long, with an influx of new tenants eying up city lviing.
He added: “With restrictions easing, optimism is returning. The demand will steadily grow for the rest of the year.”
The average rent in the UK is now at a record high of £1,029 per month.
This is up a staggering 6.6 percent from the same time last year, and up 2.2 percent from the previous month’s figures, the HomeLet Rental Index shows.
Unsurprisingly rent in the Capital has risen to a high average of £1,645 PCM.
While the South West of England saw the highest annual price rise, with the current average price of £989 PCM.
This marks a 12.9 percent increase for the area compared to this time last year.
Which Brits moving back to the cities?
While rental costs may be down 1.2 percent, they’re expected to begin to soar as hordes of people make their way back to the cities – meaning your London rental prices could be about to skyrocket.
According to property experts, young professionals and divorcees are among those Brits keen to move back to bustling city life.
Jane Wood, founder of Jane Wood Property Finder said: “Young professionals who have tried life in the county (often having moved back home during Covid with their parents), find they are missing the buzz of the city and are finding the commute too onerous now that they are back in the office.
“We have also seen an increase in the number of new divorcees who are moving out of the family home and returning to the City for the next stage of their life.”
Graham Hayward, Chief Operating Officer, of Housing Hand. told express.co.uk: “Interest in rental properties has increased as employers are still establishing an appropriate balance with working from home.”
Interestingly Britain’s rush to throw off all remaining Covid restrictions might be partially behind the recent rents hikes.
Mr Hayward said: “The UK is very attractive at present as Covid restrictions are lifting and flow of inbound investment especially in build to rent is really gaining traction.”
Despite this internationals may struggle to get into rentals in the UK.
Mr Hayward said: “Internationals have had to embrace the new right to remain rules that have caused some delay in gaining approval to rent.
“Many internationals need a guarantor to move ahead as proof of income for referencing has become more challenging.”
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