Property Rent rises at the fastest rate!
The UK rental market is thriving, with rental prices rising at their fastest since 2008, with the average monthly rental being £790 per calendar month.
This rental increase is met by many factors, including the rise in property prices, pushing up rental prices. Another factor is that many tenants are not looking to buy a proprety, but would rather rent a high-end apartment or house instead.
Developments such as the Wullcomb opposite the Highcross have been created for people looking to rent high-end apartments. These developments are luxurious, furnished, and have large open communal spaces, rooftop gardens, a cinema, and a concierge service. Other developments are due to come to completion soon and will target just the high-end rental market.
Leicester is also known for many commuters due to its central location. For many who are not sure where to buy, renting is a safer option in the beginning. You get to try out an area and see if you like it before purchasing a home.
The rise in property prices has not helped those who have been saving for a deposit. Even with government schemes available such as the Help-To-Buy Scheme, and the 95% Mortgage Scheme, many are still unable to borrow due to the strict lending criteria given by lenders. With the rise in property prices, a larger deposit is required, with some feeling the frustration of having to keep chasing for a deposit.
With more people looking to rent and the shortfall in available properties, rental prices are being pushed higher.
With many developments being built in the centre of Leicester, some are specifically for the student market. University students are now looking for luxurious accommodation compared to 10-15 years ago and expect these developments to have some amenities. Some students are willing to pay more for a central location to be near the nightlife.
Graduates starting their new jobs will often rent first before looking to buy, and many will be looking for high-end apartments to rent, with amenities that they are used to from the properties they used to rent while at university.
The centre of Leicester is also creating a buzz for people who are looking to rent in the city. With St. Martin’s square, The Cultural Quarter and the Highcross offering many places to wine and dine, it certainly will attract the younger generation.
The rental market is now moving at its fastest pace since 2016 with a rental property having a tenancy signed with an average of 15 days.
For landlords and developers, this is excellent news. If you are a landlord, demand is high for rental properties, and you will achieve a good return on your investment. For developers building either high-end accommodation and student accommodation, they should also see a good return on their investment due to a higher number of tenants looking to rent in the centre of Leicester.
There will certainly be more competition for tenants when looking for a property to rent due to the market's shortfall on available properties and the increased number of tenants looking for a property. However, as a tenant, you will see more luxurious properties coming into the market, especially in the city centre.
The rental market is set to continue this trend for the foreseeable future.
At Seths, we have a dedicated property investment team that works with landlords and developers taking care of every aspect of their investment. To find out more about our dedicated service, call us today on 0116 266 9977!