The latest edition of our quarterly residential insights for the UK, analyses rental performance, affordability, supply and demand, and investment volumes. Providing insight for investors, developers, and the wider build environment.
Key Findings:
- Annual rental growth in the UK (excluding London) has slowed to 7.8% & London rental growth slowed to 6.2%;
- Rental affordability remains stretched, with the average renter in the UK (excluding London) spending 33.2% of their income on rent;
- Tenant demand has slowed, and there has been an increase in homes available to rent, suggesting we are returning to a more ‘normal’ pre-pandemic market;
- Rental growth is forecast to slow to a more sustainable level from 2025 onwards;
- New homes delivery isn’t going to improve anytime soon, with planning permissions down 20% on last year, starts down 16% and completions down 11%;
- Investment volumes in Q1 2024 remained muted with £0.9bn of capital invested into the UK BTR sector.
