Why do rental & house prices in the UK always seem to go up?
Over the past 12 months, rents have increased by 11% on average, and in recent years, property prices here have increased by almost 30% which far exceeds even the current rate of inflation.
To help you understand this better, there is a massive shortage of properties available in the UK, both to buy and to rent. With the number new build properties not meeting targets year on year, there will always be more demand out there for properties.
Zoopla’s latest report estimated there is 61% higher demand for properties right now compared to the 5 year average. Many of these people won’t be able to find a property to buy, and if they do, they may have to excess wait periods for the people they are buying the property from to find a new property due to the competition out there.
This is leading more people to look at renting as a shorter-term option, perhaps 6 to 12 months, while they wait to find a new property.
There are also 260,000 fewer rental properties in the UK right now as many landlords have left the market due to more regulations coming through and also to capitalise on their gains.
Combine these two factors and you have a lower supply in the private rented sector and a different demographic of renters coming into the sector as well. This is making it even more competitive than usually to get a rental property which is pushing prices up almost on a monthly basis.
If you’re interested to know the current rental value of your property, especially if you haven’t put your rents up in the past year or so, click below and book your free valuation with us