UK rents are predicted to rise by 11.4% in the next five years, according to a forecast by CBRE research. The property group forecasts that rents will rise 1.3% in 2019. The report looks at how economic, political, financial and technological trends might affect property markets. CBRE estimates that rents are likely to rise by 1.3% in 2019, followed by growth of 1.9% in 2020, 2.5% in 2021, 2.7% in 2022 and a further 2.6% in 2023.
The report is based on national figures so we've been looking at local activity to see if our area is following this trend. We have seen that not only are tenants staying for longer in their rental properties, with an average term of 26 months in 2016 going up to 30 months in 2018, but tenants are now expecting rent increases at the time of renewing their tenancies. This is a marked difference to 2017 where tenants were requesting rent reductions at the renewal stage. With the imminent arrival of the tenant fee ban, media predictions are that the costs of letting will also get passed on in the form of higher rents, which falls in line with the CBRE predictions.
If you'd like to take advantage of this healthy market and have a property to let, you can get a free, instant, rental estimate from our website here or you can call us on 020 8740 6622 to make an appointment for a more detailed valuation with one of our lettings experts,