The average cost of renting is rising again – The takeaway for UK expats

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The average cost of renting a property in the UK has risen again – this time to £995 per month. This is an 11% increase in rental prices over the past year.

Manchester city centre, UK

As people return to city centers to live and work post-Covid, demand for properties in city centers is skyrocketing.

House shaped keychain on top of a document indicating

Tenants are now staying in their properties for 75 weeks, five months longer than at the start of 2017.

Panoramic view of London skyline during sunset, UK

London saw a 15.7% rise in rents – the largest annual change in the UK.

With rising rents resulting from a localized image, UK expats need to pay extra attention in order to make the right investment in the right area.

Rental properties are likely to be more profitable than usual and are also likely to experience fewer, or at least shorter, void periods.

—Stuart Marshall

MANCHESTER, GREATER MANCHESTER, UK, June 29, 2022 /EINPresswire.com/ —
The preview.
According to Zoopla, the average cost of renting a property in the UK has risen again – this time to £995 per month. This is an 11% increase in rental prices over the past year. “UK rental prices have been following this trajectory for some time now,” says Stuart Marshall of Liquid Expat Mortgages. “This is mainly due to a shortage of rentals available in city centres. As people return to city centers to live and work post-Covid, demand for properties in city centers is skyrocketing. Anecdotally, we’ve had many discussions with UK expats and overseas domestic investors who want to invest in city centers using Mortgage for UK expats and foreign nationals some products. But one thing we’ve noted in these discussions is that the rise in average rents is largely due to extremely localized increases. So, for UK expats and foreign investors to maximize their investment prospects, they will need to choose the right investment area. This area will likely be an area with a recent increase in average rents, indicating strong rental demand.

What is happening in the rental market?
Rents are currently rising at their fastest rate in 14 years. Zoopla’s latest rental market report shows monthly rents are £88 higher than at the start of the pandemic. Another important thing to note for UK expats and overseas investors is that tenants are currently staying where they are. “Amid market uncertainty and fears over budgets, renters are applying the ‘better know the devil’ mentality wherever they live. Zoopla reports that tenants are now staying in their properties for 75 weeks, five months longer than at the start of 2017. This indicates shortened vacancy periods for UK expats and overseas domestic investors investing in the right areas.

London saw a 15.7% rise in rents – the largest annual change in the UK. This is largely due to a huge mismatch between supply and demand in the capital. “After the two-tier rental market that emerged during lockdown saw London rents suffer, a sudden return to work and social scenes in the capital has put enormous upward pressure on prices. The huge upside we are seeing is somewhat offset by the previous 10% drop as the price correction begins to take place in the capital. Currently, demand is 68% above the five-year average, while supply is 47% below the five-year average. This means that rental prices are rising massively in the capital.

Unsurprisingly, Manchester has seen the biggest annual change in rents outside of London – a 14.3% increase since last year. Manchester has long been a favorite among British expats and overseas domestic investors and has steadily grown in popularity and profitability over the past few years. Birmingham and Nottingham also performed strongly – both up 13% – and offer a slightly more affordable option for UK expats and overseas domestic investors.

Unpacking the Rise for UK Expats and Overseas National Investors.
“For UK expats and foreign national investors using mortgage products for UK expats and foreign nationals, the rental market currently offers even better prospects than usual. As noted above, rents are rising extremely rapidly, resulting in strong profits for investors. In addition, mortgages for UK expats and foreign nationals are protected from rate increases experienced by other mortgage products. This is due to a number of factors. On the one hand, lenders recognize that the expat and foreign national mortgage sector in the UK is both incredibly lucrative and incredibly competitive, so they are not passing on rising interest rates to borrowers. . On the other hand, foreign currencies are behaving stronger than the British pound, which also helps British expats and foreign mortgage users when coming to buy in the UK.

“So those using mortgage products for UK expats and foreign nationals are at an advantage over domestic buyers. And it’s a good time to have an edge. Rents are rising rapidly due to the incredible demand for rental properties. Cities are seeing the biggest surge in demand as people keep coming back. But this demand is also not met by supply and this leads to the typical property taking only 14 days to rent. The outlook for UK expats and foreign nationals is while rental properties are likely to be more profitable than usual and are also likely to experience fewer, or at least shorter, empty periods.

“There is currently an excellent range of mortgage products for UK expats and foreign nationals,” adds Stuart Marshall. “Lenders are trying to attract businesses in a competitive market. And that means great deals for UK expats and foreign nationals. Mortgage brokers who are experts in UK and overseas expats can help you find the right deal. Because the image is localized for rent increases and rental demand, it has never been more important to seek expert advice before investing. Investing in the wrong area could mean missing out on the incredible rental demand we are seeing right now.

Liquid mortgages for expatriates
Ground Floor, 3 Richmond Terrace,
Ewood, Blackburn
BB1 7AT
Telephone: 0161 871 1216

www.liquidexpatmortgages.com

For all media inquiries, please contact Ulysses Communications.
sergio@ulyssesmarketing.com
+44 161 633 5009

Sergio Pani
Ulysses
+44 7811 326463
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