Are you looking to rent a property somewhere in the UK? Or, are you a landlord wanting to rent out a property that you already own? Either way, you’ll want to stay up-to-date with the rental market. In this blog we’re looking at whether rental properties are in high demand.
Is rental demand increasing?
It’s no secret that things are costing a lot more than they once did due to inflation and the cost of living crisis. One thing that many people have noticed is rising mortgage rates. Of course, this has a knock on effect for tenants who are then dealing with rising rents. Higher interest rates have caused new investment in the rental market to continue at a slower pace, but tenant demand remains high.
So what does this mean? Well, it generally means that privately rented homes are becoming harder to find. Get in touch with our team if you’re struggling to find a rental property. We’ll work with you to find a property that meets your needs in a location you wish to live in.
Rental demand is much higher than it was even just a couple of years ago – pre-pandemic. The pandemic may have a role to play in this change in demand that has continued in recent years.
Is the UK rental market strong?
The UK rental market is extremely strong, with many properties only being listed online for a couple of days before tenancy is agreed. According to the UK government, 19% of all households are living in private rental properties.
Research by The Guardian found that the number of households renting has nearly doubled in 2023 compared to what it was in 2001. This is as more tenants struggle to get onto the housing ladder and buy their own home.
There are so many benefits of renting a property, such as having more flexibility, a smaller deposit and not having to set aside money for maintenance costs. Renting does work in favour of many people living in the UK.
Is it worth being a landlord in the UK in 2023?
With a strong rental market and rental prices expected to continue rising, it’s definitely still worth being a UK landlord in 2023. The demand for rental properties shows no signs of slowing down.
Generally, higher mortgage rates can be offset by increasing rental prices, which can be expected in 2023.
It is worth noting that as a landlord there are rules that you must follow. For example, you can usually only increase a tenant’s rent once in a 12 month period. There may be some instances where this rule does not apply.
The average rent in the UK is £1190. However, average rents vary widely depending on the region. For example, a three bed flat in London is more expensive for renters than it would be living in the North. Living in city centres can also increase the prices of rented homes.
There are other aspects that buy-to-let landlords must consider, such as ensuring the property is safe and making sure the property meets energy standards. In 2025, private landlords must ensure that their rental properties have an EPC rating of C or above for new tenancies. This change aims to make homes more energy efficient and helps to work towards the government’s goal of reaching net zero. Landlords have also had to face tax changes in the past year. Rental supply will likely increase in the next few years, which is useful if you’re looking to purchase a new property for renters to live in.
We hope this article has been useful to you. If you’re a landlord wanting support or advice, please don’t hesitate to contact us. If you’re looking for a rental property, take a look at what we have available for tenants at Intus Lettings.
We have a wide range of properties in Manchester, Sheffield and Lytham St Annes. We can help you find a new home whether you’re an individual, couple of friends or a family. Get in touch with us today.