Rent price growth leads renters to look further afield

Rent price growth leads renters to look further afield

0:05 AM, 16th May 2023, About A year ago

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With fast-rising rents, growing numbers of tenants are becoming more flexible over choosing where to live – and are increasingly finding somewhere more affordable that is further away, one leading real estate expert says.

Nicky Stevenson, the managing director of Fine & Country, says renter affordability is also becoming stretched.

She says that the pandemic lockdown effects are still being felt and says: “The pandemic changed the way people live, and with 44% of people continuing to work from home, renters are able to be more flexible on location to find more affordable properties.”

‘42% of renters contacted their agents to move out’

Ms Stevenson continued: “Analysis of 10 major UK cities revealed that 42% of renters contacted their agents to move out of their city, up from 37% the same time last year.

“London has seen the biggest increase in the proportion of renters looking to leave, followed by Sheffield and Manchester.”

She added: “Despite rental prices climbing for the last 13 consecutive quarters, according to Rightmove, the pace of asking rent growth is slowing and has softened for three quarters in a row.

“Average prime market rents continue to grow in all regions of England and Wales, with the average prime market rent at £3,798, up 15% year-on-year.

“Although supply remains an issue, there are signs of improvement, with the number of available properties to rent 6% higher than last year, although 46% below 2019 levels.”

Lack of rental stock is being felt widely

The lack of rental stock is being felt widely with some areas having less than 1.5 months of available stock.

Also, she says, despite landlords being able to access BTL mortgages at less than 4%, they are becoming increasingly concerned over increased regulations.

Ms Stevenson also warns that renter affordability is becoming increasingly strained with rising rents and high inflation.

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