Rent prices ‘likely’ to increase in 2022 with northern locations expected to see a ‘surge’

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The Covid-19 pandemic has meant that many people have decided to move house, in search for more indoor and outdoor space. Prices increased for both renters and buyers last year as the property market continued to see demand from Britons. What is 2022 looking like in terms of rent prices?

Bruna Pani at We Buy Any House told “It’s the beginning of a New Year, and as 2022 commences most of us try to plan for the year ahead and all it is going to bring.

“For those in the property sector, the state of the property market brings some valid questions considering the bumpy years of 2020 and 2021 due to the Covid-19 pandemic.

“One area which is set to oversee changes in the New Year is the rental market. Here at We Buy Any House, we have provided an insight into the rental market of 2022.

“Throughout 2021, the increasing demand in the buy-to-let sector created an inevitable growth in the price of rent, eventually pushing prices to the highest seen in 13 years.

“This was due to the fact that throughout the pandemic, individuals became interested in having their own space and the glamorisation of inner city living soared in its appeal.

“This drastically increased the demand for high-quality rental homes, and once demand began to outgrow the supply, rent prices increased dramatically.”

However, the experts have explained that the rental market is set to stabilise, with more property available for renters to choose from.

In terms of rent prices, some industry experts have said that prices will stabilise and slow down while others have predicted there could be a rise.

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We Buy Any House added: “Areas such as the North West and Midlands are expected to see a surge in terms of rent prices, due to the prominence of emerging markets in cities such as Manchester, Leeds and Birmingham.”

Last year, rents across the UK rose at the latest pace since 2008, according to property website Zoopla.

Areas in more rural locations were facing strong demand, as many Britons opted to leave city locations.

According to experts, this trend is set to continue into 2022.

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Paul Wheatcroft, Account Director at My Local Mortgage, explained: “We expect the upwards trend in rental costs to continue into 2022, largely driven by a lack of available rental stock, as well as challenges first time buyers are facing in accessing funding.

“There are several factors that will help ease the situation. The most obvious is increasing the amount of rental stock available, however the pandemic has caused shortages of both labour and materials, resulting in a slow down of new developments, rather than the ramp-up that is needed.

“There are legislative solutions that are being discussed, such as Government support for mortgage lenders to offer more products to first time buyers, which will ease the demand on the rental market.”

Mark Hughes, a Specialist Mortgage Advisor focusing on residential property at Pure Property Finance, agreed and said that rent prices were expected to increase.

He told “Rental prices are likely to continue following their upward trajectory and the costs are likely to increase with inflation at an all-time high.”

However, it isn’t only renters that have faced increased prices throughout the last year.

Homeowners wishing to move have also found it tricky in the last year, with the lack of property on the market forcing prices to increase.

The average UK house price surpassed £270,000 for the first time towards the end of 2021.

Luckily, Mark explained that more properties should come to the market in the first quarter of this year.

He said: “People tend to stay in their own homes over the festive period, with properties hitting the market in the first quarter.

“So, looking at previous data, we’d expect January and February to see a major boost with homes on the market.”

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