introduction
Nicky Stevenson, the Managing Director of Fine & Country, asserts, "Despite the seasonal slowdown, the market is under ongoing pressure, and a robust resurgence in rental growth is anticipated as we transition into 2024, substantiated by positive indicators and trends."According to the most recent data from HomeLet, rents persist in their upward trajectory, registering a year-on-year growth of 8.9%. However, there has been a marginal monthly contraction of -0.3% in November, culminating in an average rent of £1,279 across the UK.
Investment opportunities
Unraveling Property Investment and Buy-to-Let: Exploring Rent Trends After the Summer Buzz and Predicting a Rise in 2024
Following the bustling summer season, this slight reduction in rents during November adheres to conventional seasonal norms, although it may potentially signify the commencement of a deceleration. Stevenson comments further on this, noting that, "In the prime market, where demand remains robust, the average rent has escalated by 5.8% year on year, reaching £3,854 per month. Importantly, annual rental growth is positive across all regions, with the South West taking the lead with a significant rise of 16.8%.
"Projections from industry experts indicate a sustained ascent in rents throughout 2024, buoyed by the ongoing dynamics of supply and demand. Nevertheless, analysts foresee the market potentially encountering an 'affordability ceiling' in 2025, prompting a phase of greater equilibrium."
The Rise of Lifestyle Renting and the Buy-to-Let Advantage Unveiled by Property Academy's Survey
Delving into market trends and tenant preferences, the insights provided by the Property Academy Renter Survey reveal that over a quarter of renters opt for renting as a lifestyle choice rather than out of necessity.
Commenting on the survey data, Stevenson elaborates, "Approximately 37% of respondents express intentions to continue renting for a duration exceeding two years, citing advantages such as flexibility, an elevated standard of living, access to amenities, and the ability to work remotely."
As winter settles in, tenant preferences become more discernible. Stevenson concludes, "The survey underscores that 55% of renters would prefer utility bills to be integrated into their rent. Moreover, 44% of respondents indicated an increased inclination to rent a property if utility bills were included, according to Zero Deposit.
"However, Zoopla reports that only 12% of properties currently incorporate bills within the asking rent, highlighting a potential area for consideration by landlords and letting agents."
conclusion
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