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New report: A two-speed rental market is emerging in the UK this year

by | Aug 26, 2020 | Brokers, Client Lenders, Clients

The Q2 edition of property market analyst Hometrack’s Rental Market Report is out. The key headline from the quarter is that rental growth outside London is set to halve to +1% by the end of the year. Every quarter the report draws on price and demand data from across the UK and provides a barometer of the rental market.

This quarter’s report focuses on a two-speed rental market, which is emerging in the UK, driven by divergent trends in supply and demand between London and the rest of the country.

Headlines this quarter:

  • Inner London seeing the greatest downward pressure on rents as the working-from-home policy and reduced international travel and tourism impact the pool of demand for rented property, while available supply has increased
  • Rental growth across the regions and countries excluding London remains positive – from 1.5% in the West Midlands to 3.1% in Wales – supported by pent up demand for rented housing
  • Edinburgh – the second most popular tourist destination in the UK – has seen a sharp slowdown in rental growth linked to a shift in short to long term rents and policy changes
  • Zoopla Research expects annual rental growth in the UK outside London to slow from +2.2% today to +1% by the end of the year, with an annual decline in London of up to -5% by the end of 2020

You can read the full report and download a PDF version from the Hometrack website.

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