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.