The headlines from the Q3 Hometrack Rental Market Report are:
- Two-speed market between London and the rest of the UK to be entrenched during second lockdown in England
- A supply/demand imbalance is supporting positive rental growth across most regions and the majority of cities outside London
- A squeeze on mortgage lending especially for those with smaller deposits leading to more people staying in the rental sector
- In contrast, average rents are down -5.2% in London, a further decline from Q2, as indicated in our report, amid supply overtaking demand due to changing working practices, commuting patterns and weaker tourism
- The search for space has resulted in a faster-moving market for rented houses rather than flats, although demand in the sector means all rented property is trading faster than in 2019
You can read the latest full report online on the Hometrack website.