Lettings Market Update

Lettings Market Update

As a landlord, you need to know if the market has a sound footing. For future investing, it’s vital to get insight into the potential opportunity. We share the key facts from across the UK.

Huge opportunity for landlords in a fast-paced market

  • As the economy and country continues to move back towards ‘normality’, rental demand has remained strong throughout the late summer/early autumn months.
  • City centres that suffered from a reduction in tenant needs over the course of the pandemic are also seeing a rebound in demand as offices and amenities re-open.
  • The increase in demand with a constrained supply continues to put upward pressure on rents, with a particular impact in the South West.

The upward rise in demand and the lack of rental supply has seen rents increasing at the fastest rate seen in years. London has seen rental value move back into positive growth after 16 months of falls.

Rental growth across the UK hits 13 year high

Rental growth across the UK hits 13 year high

Upward pressure on rental prices means it could be an opportune time to be a landlord. Could you be earning more from your property?

A 4.6% rise in the average rent across the UK (including London) over 12 months to the end of September is the largest increase for well over a decade. This is due to the continued surge in demand as the economy continues to open more fully and life returns to greater normality; this impact is being felt far and wide across the UK. The South West leads the way with the fastest growth at 9%, a reflection of the desire for people to move to more rural areas.


Rental value increase in Scotland


Rental value increase in Wales


Rental value increase in the UK, excluding London

A return to rental growth in cities too

A return to rental growth in cities too

City centres have seen a marked uplift in rental growth as people look to return.

Central city locations have seen rental demand more than double since Q1 this year (with the exception of Edinburgh which rose by 60%). Overall London rental growth remains behind but still grew by 4.7% in central locations. Rental growth in outer zones also remained steady perhaps showing the impact of the pandemic and the appetite for more space. Relative affordability is also a strong factor.


Rental value increase in London inner boroughs


Rental value increase in inner Edinburgh


Rental value increase in inner Birmingham

Rental demand soars – but stock is down

Rental demand soars – but stock is down

The growth in demand and lack of supply, remains a significant factor, as it has done for over a year now.

Over the short-term, the bounce-back in demand quickly impacted available stock levels. However, longer term there are also challenges around landlord investment into buy-to-let, due to such aspects as additional taxation and regulation changes. The stamp duty holiday caused a short –term uplift in landlord activity but not enough to offset longer term stock supply issues. The lack of rental stock will remain a feature of the market for the coming year and potentially beyond.


Increase in rental demand w/e 7th November vs 5 year average


Reduction in stock available w/e 7th November vs 5 year average

15 days

Average time to rent September 2021 compared to 20 days in July 2020, almost a week faster

We're here to help

If you are a landlord looking to improve their rental yield, or you would like to know more about your property’s rental value:

Statistics from the Zoopla Rental Market Report November 2021.