With a turbulent last couple of years caused by the pandemic and as we have entered another year, we look at what the rental market looks like across the UK and in particular why the demand for single let rooms has rocketed.
Demand across the UK
A report conducted by the House of Lords, by the Build Environment Committee, ‘Meeting housing demand’, says that the overall housing picture over the past 40 years shows: a doubling of the private rented sector and according to the Bank of England demand for rental property has remained strong in most parts of the UK, with the rental growth being at a 13-year high, as demand for rental accommodation surges across the UK. This is all despite a global pandemic, multiple lockdowns and Covid restrictions. Data from February 2021 shows double digit increases in demand, compared to the same period in 2020, in dozens of UK towns and cities.
The ‘Meeting housing demand’ report also states that, the Office for National Statistics projections show that, “Most of the projected growth in households between 2018 and 2028 will come from one-person and multiple adult households without dependent children”. The number of households with dependent children is expected to increase by around 80,000 (1.2%), while one-person households will increase by 727,000 (10.1%) and multiple-adult households by 833,000 (8.8%).”
Renters are still moving – and all key towns and cities in the country are seeing increased demand. Ipswich (86%), Warrington (84%) and Northampton (82%) lead the way, showing that it’s not simply a case of renters moving out of London to nearby commuter towns, but a wider demand surge across the country.
According to the National Residential Landlords Association, landlords have reported huge-demand for rented property, with tenant enquiries reaching a five-year high. In Yorkshire and the Humber, Wales, the South West and the South East over 60 per cent of landlords said that demand for homes to rent had increased.
The increased demand for a rental home comes, as supply remains low, with total stock levels, some 43% below the five-year average, putting upward pressure on rents.
The demand for single room rentals has rocketed
Demand for rooms has rocketed in recent months, coinciding with a huge shortage in the number of rooms available in the UK. This demand is being driven by market changes, which has seen a big influx of potential renters since the summer, following the easing of Covid restrictions.
The increase in demand has been driven by people coming into the market, rather than moving within it. Many people are moving back out of parents’ or friends’ houses, flat sharing after renting on their own or owning a property, and overseas students (and students in general) are starting to return to cities.
Landlords in Exeter
Landlords in Exeter say that a ‘perfect storm’ of people returning to offices and students preparing to start university is leading to an unprecedented demand for rental properties. With one landlord saying that he had more than 20 applications in 24 hours for a single room in St Thomas, while another described the interest in a room in his St Leonard’s property as ‘insane’. This comes at a difficult time for people renting, with rental prices climbing 7.6 per cent over the last year in the South West, which is the highest of any region in the country.
Alex a landlord said that,“The rooms don’t have to be up for any time at all and there are people contacting you who are desperate for a room and that he has never seen demand like it. ”
One landlord has also said that, “A lot of applications were from professionals, but there were also lots of students asking for a room, especially ones from overseas who were happy to take the room without seeing it”.
As we enter another year, going through challenging times it seems that demand for single let rooms are on the rise. Ministry of rooms is always here to help you to either post up your single rooms you have available or to find a tenant for you. Just go to our website, www.ministryofrooms.com, to find out more.