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Rents to outpace house prices for years to come - agent

Rent rises are predicted to outpace house price growth over the next five years. 

This is according to Nicky Stevenson, managing director of Fine & Country UK, who says a shortage of stock, increased borrowing costs, and economic pressures all underpin the rental market.

“Rental records continue to topple month-on-month across England and Wales. The upward price trajectory continues as the gap between supply and demand shows little sign of easing” adds Stevenson. 


“The rental threshold of a prime market property across England and Wales now stands at £2,750, with the average prime rent at £3,661 per month. In both the main and prime markets, value growth in London is most marked. 

“The average rent for a prime property in the capital has now reached £5,000, which is close to £200 per week higher than a year ago. 

“Apartment living is back in vogue in many city centre locations, with Rightmove reporting a significant uptick in demand for smaller apartments, with studio flats overtaking one-bed properties as the most in-demand apartment for renters.”

Stevenson notes that over four million households live in private rented accommodation, the majority owned by private landlords.

According to the British Property Federation, however, Build To Rent units will account for over eight per cent of private rented households by 2032. 

“Many landlords are unaware of this sector. HomeLet survey data suggests just 48 per cent of professional landlords have heard of Build To Rent, falling to less than one in five of accidental landlords” she adds.

“The number of BTR homes is forecast to increase five-fold over the next decade, from 76,800 homes today to 380,000 in 2032. 

“Although the sector has traditionally focused on London and major regional cities, close to half of all local authorities now have BTRin their housing pipelines, over double the proportion in 2017" she concludes.

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  • icon

    Yep - government policies will guarantee rent rises. Wait till the white paper is implemented- this is just the start.....

  • icon

    Build to rent eh. 380,000 in 10 years time. So still less than 10% of the total PRS. Get real guys and look after the remaining 90% !!

  • icon

    Non story, nobody knows the future. Let's get next year sorted, in fact let's wait and see what happens on 17th November!

  • icon

    I feel the world that renters will find themselves in, in the next few years, will be a lot harsher than this one, I have genuine pity for anyone who cannot own their own home. It really is ‘ Survival of the fittest’. 😬😬

  • icon

    All caused by government and the likes of Shelter, in 2 yrs time we will have a labour government and can guarantee rent caps being introduced within weeks of them being elected, then try finding a property to rent


    Yes we will need to put rents of significantly in the next 2 years due to interest rates and threat of rent caps. Really sad for my tenants, but the alternative is to sell up.

  • George Dawes

    You vill own nothing and you vill eat zee bugs !!

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    Where do they get these average rental figures from? I don't tend to get involved in the nice family house market but £2750 is massively higher than anything currently advertised on Rightmove in my area.


    Hi if I could achieve half of that in Nottingham I would be very happy 😃


    2 / 3 Bed terraced in Norwich under £1000

  • icon

    Average's are very dangerous for comparison's. A mean average, which I guess they are talking here is if you add all the properties rents and then divide them by the number of properties will give a very distorted view. If you use the mode average, this will tell you the highest number of houses at a set figure. The latter will be a very different figure to the £2750 they have used here.


    I agree.

    Many more than half of the population earn less than the national average wage due to the distortion caused by the few earning millions per annum.

    The same applies with average rents where a few very high rents distort the picture away from the typical or median rents currently charged.

    Average asking rents for new tenancies are also higher than rents actually charged for existing tenants who tend to be left on the same rent if they are good tenants - but Government interference might soon change that to the detriment of all good tenants!


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