It’s fair to say that the rental market has been changing a lot in recent years, as has the housing market. In this blog, we’re letting you know what to expect from the rental market in 2024.
The cost of living crisis has led to many items and services increasing in price. This has made it difficult for homeowners and renters in 2023. Going into 2024, inflation remains higher, which can have a significant impact on the rental market.
Rental market predictions in 2024
In 2024, it’s expected that more people will remain in rented accommodation rather than purchasing homes. This is due to the increased mortgage rates that occurred last year. While mortgage rates are lower than they were last year, they remain higher than most people would like. House prices decreased later last year, but not by a significant amount.
Higher UK house prices and mortgage rates for landlords means higher rental costs for tenants, which has a huge impact on people being able to buy homes. This means that people are more likely to buy homes later in life rather than as young adults.
Landlords in 2024
Being a landlord has certainly had its ups and downs over the last few years. If you’re thinking about becoming a landlord in the UK then there are some things you will need to consider.
As we mentioned before, the increased costs of everything in the UK has definitely been a challenge. Landlords have had to face higher mortgage rates and had to spend more in order to become a landlord of a property. As a result of this, many landlords have already sold or are planning to sell their rental properties. This can be a positive for new landlords and first time buyers who might be searching for these properties.
Changes to rental regulations
The Renters Reform Bill is still going through parliament, and it does mention some significant changes. One of the biggest changes that has been proposed is that tenants will be able to keep pets in their rental homes. Another change that has been proposed is to end fixed-term contracts.
As a landlord, it’s very important that you remain up to date with the latest developments in the industry. You’ll need to keep an eye on the following.
- Annual rental growth
- Property prices
- Net zero requirements/energy efficiency in your rental property – as the rules are changing
- Options for buy to let mortgages – there may be fewer mortgage deals available
- Energy Performance Certificate (EPC) regulations
- Interest rates
Increased rental payments
While increased rental costs might seem like a positive, they might not always be. This is because as rental costs continue to rise, many tenants are struggling to keep up. As a result, tenants may be more likely to look into mortgage options as they may end up spending less money than they would on UK rents in a rental property. Average rents are likely to continue increasing.
If you’re thinking about becoming a landlord in 2024, there are lots of elements that you will need to consider before taking on your first rental investment. Read our blog on tips for first time landlords.
We offer support for landlords and tenants in the UK. Please don’t hesitate to contact us if you have any questions. We offer a wide range of property management services. We can help you to find rental homes and offer support for your tenanted property.