The only truly certain thing about the 2019 rental market is it’s uncertainty.
The results of Brexit will likely effect the property market, as it is sensitive to confidence levels. However, while the outcome of Brexit remains uncertain, economists can’t currently make sure predictions about what is going to happen to future rent prices.
2. Good rental returns
Despite the unknowns of 2019, landlords are likely to make good returns on their investment. Rising rent prices and high demand for property mean landlords will have good opportunities to make money.
Outside of London, Bristol has the highest private sector rental costs.
The median monthly private rent in Bristol is currently a staggering £873, with the most expensive streets in Bristol including College Fields in Clifton and Harris Lane in Abbots Leigh. In the current climate, landlords will be able to continue charging high rent for properties, and so maximise their rental incomes.
Typical house prices are now nearly 10 times higher than the typical salary, while typical rents are equal to 41 per cent of typical wages.
3. Prices will continue rising
High demands for rental property will continue to outstrip supply, with large numbers of tenants competing for every property. This will continue to push rent up. While some have reported a slowing of rental price increases over the last few months, it is likely they’ll continue to rise.
Rent is expected to climb by a projected 15% over the next 5 years. This is partly because more people will look to rent as they can’t afford to buy their own homes.
The future then looks bright for landlords. High rental costs and high demand will lead to higher income. More on how landlords can further maximise their income here.