Cookies
We use cookies to give you the best possible experience on our website.
Accept All Cookies
Find out more
Cookie Portal
Manage and find out more about the cookies used on this website.
View Cookie Settings
Read Cookie Policy

Accept All Cookies and Close
Close Without Saving
< Back
This website has 3 types of cookies:
Your preferences will not take affect until the next page loads or this page is reloaded.
Strictly Necessary Cookies
Feature Cookies
Performance Cookies
Save and Close
< Back
< Back
Cookie Policy
< Back
Any bedrooms
Any bedrooms
1 or more bedrooms
2 or more bedrooms
3 or more bedrooms
4 or more bedrooms
5 or more bedrooms
Branches selected
All properties
Toggle Filter
UK rents expected to rise by an average of 11.4% over the next five years Image

15th January 2019
UK rents expected to rise by an average of 11.4% over the next five years

UK rents are expected to rise by an average of 11.4% over the next five years, according to a prediction by CBRE.

Alongside fairly moderate growth of 1.8% in the average UK house price this year, the property group expects rents to rise by 1.3% during 2019.

The report, which looks at how economic, political, financial and technological trends could affect the property market, foresees further growth in rents leading up to 2024, supported by a drop in housing supply in the private rental sector, amid “dampened investor demand for buy-to-let”, and growing demand for rental homes, particularly from lower-earning young people.

CBRE estimates that UK rents will rise by 1.3% in 2019, followed by growth of 1.9% in 2020, 2.5% in 2021, 2.7% in 2022, and a further 2.6% in 2023. This equates to total growth of 11.4% during the whole period.

House prices, on the other hand, are expected to increase by 1.8% this year, followed by growth of 2.3%, 3.4%, 3.7%, and 1.3%, equating to 13.1%.

Miles Gibson, the Head of UK Research at CBRE, says: “We expect rather weak house price and rental growth over the next year, but we think that the lack of supply and low interest rates for mortgages will hold prices up.”

He adds that weak supply and strong demand is “creating a lot of interest among investors” in the student accommodation and build to rent sectors, especially in terms of institutional capital.

Some £2.1 billion of institutional funds have been invested in the year to the third quarter (Q3) of 2018, which is 51% higher than in the same period of 2017.

Investment is on a firm upwards trajectory, with volumes in 2019 likely to exceed 2018’s total, according to CBRE.

Leave a comment


0 Comments

UK rents expected to rise by an average of 11.4% over the next five years Image

Leckhampton Property Alert

This charming, period, end of terrace home with its generous c.74 ft south westerly facing garden, is situated in sought-after Leckhampton and just a short distance to the Bath Road amenities and bus routes.

Read article

Tewkesbury sees largest population increase outside of London

The number of people living in Tewkesbury grew by 2.5 per cent last year, far greater than the UK average. The borough's population swelled by 2,267 in just 12 months, according to figures released by the Office for National Statistics.

Read article