Will 2023 UK rental prices be 'too high'?
Landlordbuyers.com have delved into the UK property market. It's recently been recorded that the number of rental properties on the market have dropped by almost 50% over the past 3 years.
According to the latest National Statistics data:
- Private rental prices paid by tenants in the UK rose by 3.0% in the 12 months to June 2022, up from 2.8% in the 12 months to May 2022.
- Private rental prices grew by 2.9% in England, 1.9% in Wales and 3.5% in Scotland in the 12 months to June 2022.
- The East Midlands saw the highest annual growth in private rental prices (4.3%), while London saw the lowest (1.7%).
In terms of what's in store for the UK rental market, Landlord Buyers Managing Director, believes that
"The additional 3% stamp duty land tax on the purchase of second homes, including buy-to-lets, will have a big impact – this was announced almost 7 years go. Throughout the remainder of 2022 and into 2023, this will make UK landlords question their investment in the market
Looking ahead, we see a new and completely unique set of factors on the horizon. Increasingly tough minimum energy efficiency standards in the private rental sector, between now and 2028, will do one of two things – compel landlords to invest thousands in their buy-to-lets (which in turn increase the price for tenants) or, once again, force landlords to reconsider their future in lettings. We may see higher rents imposed so landlords can recover their eco improvements costs, or we'll another disposal of assets among property investors."