Recent statistics from property website Zoopla have highlighted that rental demand outside of London has hit a 4.5 year high, with rents in the south east being 2.1% higher than a year ago and the average rental sitting at £1,061 pcm.

The average growth for the south east is at the lower end of the scale when comparing to somewhere like the North East (5.5%) or South West (5.3%), however is encouraging when compared to the 9.4% dip in London.

According to the Land Registry, the average property price in the South East excluding detached houses is £293,239 (March 2021) and this average gives us an approximate average rental yield of 4.4% for the same month.

This trend could be partly as a result of pent-up demand following the lockdowns during 2020, however it is also true that the supply of homes to rent has failed to keep pace with demand.

Zoopla comments that this is driven by several factors including fewer tenants making the move from the rental sector partly due to affordability constraints and partly due to a reluctance to make large investment decisions during the pandemic and the number of homes in the private rental market having fallen slightly since 2016.

What Does This Mean For Landlords?

For landlords, this strong tenant demand and scarce supply of homes could be positive if in a good position to either let out a property quickly or you need to source new tenants.

It is important to highlight that this trend could reverse so landlords should always keep one eye on the market!

What Does This Mean For Tenants?

For tenants, the current market can cause some challenges such as there being stiff competition from others looking for similar rental properties.

With increasing rents, tenants are likely to also find that they need to fork out more for a deposit as well as being able to pass affordability for higher rents.

Can We Help?

As the country begins to settle back into some sense of normality, there are increasing broad options when it comes to both residential and buy-to-let mortgages.

We always recommend that you use a broker to get the best deal and our team are on hand to answer any questions that you may have!

Whether you are a landlord, first-time buyer or looking to move home and have any questions relating to your remortgage, our team have a significant amount of experience, so do reach out to us on 01322 553282 or contact us online.