One of the first forecasts for the rental market for 2024 suggests that strong growth will continue.
Property consultancy JLL says that a lack of new rental stock and a challenging interest rate environment will lead to rental growth exceeding wage growth next year, with rental prices across the UK expected to increase by 5.0 per cent in 2024.
This comes after UK rents increased around 6.0 per cent on average this year, followed by Greater London on 7.0 per cent.
The consultancy also highlights the significant undersupply of homes in the UK. Since the introduction of housing targets in the mid-2000s, there has been a cumulative undersupply of approximately 1.5m homes.
JLL predicts that this undersupply will worsen further, with a cumulative shortfall of 720,000 homes between 2023 and 2028.
On the sales side, JLL’s outlook for prices in 2023 is that they will end this year on an average of 6.0 per cent below last January’s figure, with prices in London down 4.0 per cent.
Looking ahead to the period from 2024 to 2028, JLL predicts that prices will bottom out in 2024, with the expectation of single-digit annual falls in the year to December 2024. A return to growth is forecasted in 2025 as fixed rates decline and market outlook becomes more certain.
In terms of rental growth, JLL anticipates that the lack of new rental stock and a challenging interest rate environment will lead to rental growth exceeding wage growth. Rental prices across the UK are expected to increase by five per cent in 2024.
JLL’s residential research director Marcus Dixon says: "Despite the uncertainties faced by the UK property market, we have seen resilience and stability over the past year. Looking ahead, we forecast a bottoming out of prices in 2024, with single-digit annual falls likely.
“The UK housing market still faces challenges in terms of supply, with a cumulative shortfall of 720,000 homes expected between 2023 and 2028. Addressing these structural barriers is crucial for achieving meaningful increases in supply and mitigating affordability issues."
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It's only going to get worse as time goes on.
I can’t see this rental growth . As when the RRB comes in that’ll limit, curb or stop ur ability to increase ur rent.
If that makes you feel better, then think that. Just look what’s happening in Scotland 🏴 😲😲
It's difficult to see with your head in the sand
Then, in anticipation of that, here is your opportunity to raise the rents to full market value before it comes in.
Trigger, there is nothing in the RRB that stops you putting up rent, only that you can only do it once a year with 2 mths notice & a S13.
Well in the words of the fantastic Victor Meldrew …….I don’t believe it !! 😂😂👌🏻👌🏻 Well of course they are going to keep rising. We are still selling off council properties ( on the cheap), we as landlords are selling our properties, the developers are cutting back on building and ‘ land banking “, and to top it off the government don’t appear to see a problem 🆘…….. Yep, they are incompetent.
I would say the government ARE THE PROBLEM!
I'm in the student sector which is obviously driven by the academic year. All my houses for next September's intake have been taken already! We started marketing in mid-Oct and all reserved within a week. Last year was an eye opener, this time was bonkers. Market rents have also risen by between 15 - 20%
Just in time for labour to get in and introduce rent controls , but their backers will no doubt be exempt
Just applies to us lot … as usual
… And don’t forget an evictions ban, from the pool of catastrophic ideas up north 🏴🏴
So undersupply 720000, nett immigration 660000. Hmm
No doubt now Suella is no longer helping protect our borders the 660,000 will rocket!
Sky high rents are not enough to keep landlords in the market, or attract many new ones, because we are largely an older, risk adverse group and investing in property is no longer ‘safe as houses’ - it’s now a high risk strategy whereby profits and rights can, and have been, arbitrarily legislated away.
You nasty man you, you want to be paid for housing someone!!!
I agree Nic, I am approaching my 70's and don't want the hassle any more.
My next problem is actually managing to sell the properties and then pay a CGT with virtually no allowances from April next year.
However, keeping on to them, is probably going to end up in tears.
According to the Govt's own figures, 68% of the PRS is owned by landlords aged 55 or older. To any smart person, that's a big red flag. Unfortunately our politicians think that they can bash that cohort of citizens with no consequences.
I am a pensioner and I own one property which I have let to a young couple for about 10 years at below market rent When they move I will be selling
Can't have any dissenting voices these days
Gotta love Maggy, it's everyone's right to buy your council house at a discount. Now it will be everyone's right to buy their rental property at a discount. How dare you have equity at 65, you greedy person you.
Yes its going to get worse it ok to say increase the housing allowance but who is going to be paying for it, its bad now.
This is out of control I have lost 3 lots this year to the Benefit System and know of 2 more.
The single partner parent syndrome, they all want to be on it and are getting it. That’s 5 Flats lost only because the System encourages it to happen a much better option than paying your way, the freeloaders will be there secretly as well for sure everyone knows this. You’ll never have enough housing with those rules or keep them build. Its a bit like the National Health the abuse is unbelievable. As it happens all those people are from other
Countries and not long here, so how many are there of a sudden ?. They are not going to be buying their own ever they are not stupid.
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