The rental market in the UK is, perhaps, the most active it has ever been. Remarkable shifts in the wider property market, coupled with an inflation crisis entering its second year, have created a unique economic situation in the country – particularly with respect to living situations.
Where first-time buyers were already being priced out of the property ladder, recent months have truly laid the foundation for ‘Generation Rent’ enduring. But the subsequent pressures on the rental market have seen prices there increase considerably – making it all the harder, particularly for single adults, to find reasonably-priced accommodation. So, what state is the rental market in, and how can you effectively seek an affordable rental property?
The State of the Rental Market
Put simply, rents have been on the rise for some time. According to a recent report by the BBC, rents are rising at their fastest rate in seven years, having inflated by 4.4% on average over the past year. Numerous factors are responsible for this shift, but landlords are largely reacting to increased interest rates resulting from the Bank of England’s attempts to curb inflation. The buy-to-let boom is partially responsible for this rent crisis, with younger and newer landlords less able to meet risk than older hands and larger businesses.
Meanwhile, high demand in urban centres has been spiked by rising property values, and affordability issues have caused landlords to react with higher deposit requests and harsher stipulations. Both buying and renting are getting harder – but what can you do about it?
Finding a Rental
A key virtue to have when looking for rental properties is agility. How able are you to adjust your requirements to suit your housing needs? For example, many get stuck in a cycle of seeking cheap properties in London, when the commuter belt around London is much less competitive and much more affordable. The same is true for northern cities like Manchester; the commute from Salford to Manchester is a trifling one, and properties in Salford generally cheaper than those in Manchester city centre.
Another vital step in the process is to ingratiate yourself with letting agencies and property management companies. The more you are able to pester for updates and viewings, the further up the list you will be with certain reps. You might also sign up for email updates, to learn of any potential openings at your earliest convenience.
Dwindling SupplyA core element to the increased difficulty of finding rental homes is a shortage of available properties full stop. Demand has remained uniquely high since mid-2020, but investment in rental properties in particular has slowed to a stall. Higher interest rates make it harder for even established property owners to expand their portfolio, as well as have a narrowing effect on profit margins. Added to payment struggles from a considerable percentage of the rental population, this makes for a perfect storm.
