Countrywide predicts increased competition for rental homes
What the Countrywide report says about UK property
According to a recent report by “Countrywide”, 2018 is expected to see an increase in competition between tenants looking for homes for rent as both demand and the costs of rents increase.
The report reveals that in Greater London alone, the cost of a new let has increased from £1,654 in 2016 to £1,706 in 2017. In terms of rental growth, whilst there was a modest dip in London between 2014 and 2016, the market started picking up in 2017 and the report suggests, surge in 2018.
Across the UK, the demand for rental properties has risen from 1.8% in 2016 to 2.4% in 2017. However in December 2017 there were 4% less rental homes across Great Britain than in December 2016. In London, this number of homes decreased by 21% over the same period.
The proportion of homes bought by landlords for renting in London during 2017 was 13.2%. Nationwide, this proportion fell from 14.7% to 12.5%, representing a 9 year low and a drop in homes in the rental market.
This growth in demand and reduction in available rental properties is likely to give rise to increasing costs and pressure on the market. So what can be done to help balance this and bring more properties into the market in London and across the UK?
A new app to help access the London property market
UcaDO are creating a new way of managing property transactions in the rental market. This soon to launch app, which is totally free to download and use will offer rented accommodation without the need of estate agents, and so will offer an attractive solution to those looking to move into rented properties.
It effectively removes the need for expensive agency fees, thus opening up the rental sector to many who would not have considered it an option - and in turn should start to bring in more properties to satisfy this growing demand.
Students will also benefit from our app with Open Banking making the move into rented accommodation easier for them, especially if we take into account that they currently pay the highest proportion of rent and the app will reduce the costs of moving in.
Our marketing strategy during the launch of our app will be focused primarily in the London area. For this reason we have found this report interesting, as we expect growth in the rental sector for this year.