If you’re looking to rent a house, you will have come across a few of the issues and benefits of the current rental market in the UK. However, it can indeed feel overwhelming and risky if you don’t know how to navigate it. But don’t worry; we’ve got you covered — we dug into surveys, reports, and expert opinions to uncover the truth about renting in the UK today and tips for succeeding.
In this guide, you’ll learn the latest trends in rent prices and availability across the country. We’ll show you how to spot the best deals as well as which cities and neighbourhoods offer the most bang for your buck. You’ll also get insider advice on everything from handling agents and fees to your rights as a tenant.
By the end of this read, you’ll feel empowered to find a place you love without being taken advantage of. And our new Sunbeam apartment complex is a great place to begin your search — it offers luxurious 5-star housing options in the heart of Wolverhampton.
An Overview of the UK Rental Market
The property rental market in the UK is constantly changing, but the current situation can look challenging for tenants. Although demand for rental properties remains high, the supply of available homes has declined recently—and is still projected to decline further—as more landlords are selling their properties to avoid the risk of tenant arrears.
Given the sentiment surrounding the irregularities in the UK property market, a staggering 33% of landlords in England and Wales are considering reducing their number of rental properties within the first quarter of 2023 — up from 20% in Q1 2022. This mass exodus of landlords from the market is primarily due to increasing costs, specifically higher taxes on rental income and tighter regulations on evictions and rent increases.
This news is far from what you want to hear as a renter — fewer landlords mean less competition among homeowners and increased house rents in the existing properties. So, do your due diligence before going house-hunting. Remember, Paragon Living offers just what you need in a rental property — get in touch with us today to get the best value for your money.
Rental Rates and Affordability Across the UK
The house rental market in the UK can be tough to navigate, but as a tenant, the odds are in your favour if you go in prepared. Demand for rentals is high, giving you more options and leverage. However, rental rates are also rising across much of the UK, with a 5% surge in the 12 months to May 2023.
In London, rents were up 5.1% in the 12 months to May 2023. The West Midlands, North West, and East Midlands also saw significant increases, while the South East and North East experienced the least rental spikes in the year. Many investors are now choosing to invest in Manchester properties, given the city's growing demand for rentals and strong potential for capital growth.
If you only need a sub-standard apartment, set a budget and stick to it no matter where you’re looking. Compare rates on sites like Rightmove, Zoopla or OpenRent to get an idea of average costs in your target area for the type of place you need.
Our remodelled Sunbeam factory in Wolverhampton offers the best of both worlds: up-scale, luxurious apartments at affordable rates. Our ultimate aim at Paragon Living is to ensure tenants have access to chic housing options without them having to break the bank.
Act fast when you find a listing that interests you. Competition is fierce, especially at lower price points. Schedule a viewing immediately and be ready to put down a holding deposit if you like the property.
If affordability is a concern, consider flatshares, house shares or rooms to rent. Not only can sharing cut your costs dramatically, but it also provides a built-in community. Look for listings from professional landlords or property companies rather than private individuals, as the former typically offer higher standards and security.
Higher demand also means landlords can be picky, so build your case by having references, credit reports, bank statements, and pay stubs on hand. Be prepared to fill out a rental application on the spot as well. With patience, savvy, and a knowledge of what to look for when renting an apartment, you’ll find a comfortable place to call home without breaking the bank.
The Most Affordable and Unaffordable Cities for Renters
Here are some of the places you can find affordable properties in the UK rental property market, and likewise, where you’ll find less affordable properties:
The Most Affordable Cities for Renters
Some of the least expensive cities for renters in the UK are:
1. Hull
Hull has some of the lowest rents in the UK, with a one-bedroom apartment costing £542 per month on average. It has a relatively high availability of rental properties, and rents have remained stable. The city has two universities, so a large student population contributes to the demand for rentals.
2. Stoke-on-Trent
Stoke-on-Trent in Staffordshire has an average monthly rent of £620 for a one-bedroom apartment. It has a good supply of rental properties, especially smaller flats and houses. Rents have risen gradually over the years but remain very affordable compared to most other UK cities. The city has six towns with a mix of Victorian terraced houses, modern apartments and rural cottages available for rent.
3. Wolverhampton
Wolverhampton is one of the most affordable and best places to live in the West Midlands. Monthly rents for studio apartments in Wolverhampton’s Sunbeam apartment complex start at £700 per month, while a one-bedroom apartment costs £895 per month. There are several nice areas to live in Wolverhampton—from idyllic suburbs like Compton to the bustling City Centre—so you can rest assured you’ll find an area that meets your requirements. The city also boasts excellent transport links to major cities like Manchester and Birmingham.
The Most Unaffordable Cities for Renters
Some of the most expensive cities for renters in the UK are:
1. London
London has the highest rents in the UK by a large margin, with the average monthly rent for a one-bedroom flat being about £2,777. Renting in London requires a high salary to afford the cost of living in the city. However, you’ll find high-end buildings in this region, which can justify the higher rent price.
2. Cambridge
Cambridge has an average monthly rent of around £2,605 for a one-bedroom apartment. The city has a limited supply of rental properties, and increasing demand from students and professionals working in Cambridge and London leads to rising rents each year. Properties close to the city centre and train station command the highest rents.
3. Oxford
Oxford is another university city experiencing very high rents, averaging £1,798 per month for a one-bedroom flat. There aren’t enough rental properties to meet demand, especially flats suitable for students and young professionals. Limited availability and increasing demand each year have led to substantial rent rises. Renting in Oxford is expensive, especially considering the city’s average annual salary of £30,575 (about £2,550 per month).
Finding a Rental Property: Online Resources vs. Developers vs. Estate Agents
You have access to many options when exploring the UK house rental market, including the following:
- Property developers who build houses for rent.
- Estate agents who keep track of available properties and promote them to you.
- Online resources, where you can browse for available listings.
Here’s what you need to know about each of these options:
Online Resources: The Pros and Cons
When searching for a rental, the internet seems like a prominent place to start. Online property portals like Rightmove, Zoopla and OpenRent allow you to filter by location, price, property type, and amenities to find places that match your needs. While online listings do have their perks, there are equally some downsides to relying solely on them, as we’ll see below.
Pros:
- Convenience: You can browse listings 24/7 and contact agents or landlords to arrange viewings.
- Choice: Thousands of properties are advertised, so you’re more likely to find something suitable.
Cons:
- Outdated Information: Properties are sometimes advertised after a tenant has been found, meaning you may still view listings that are no longer available.
- Lack of Screening: Anyone can advertise a property online, some listings aren’t verified. Some may be scams posted by fraudsters.
- Impersonal: You lose the human touch of dealing with an estate agent who can provide local knowledge and advice.
Estate Agents: The Personal Touch
Estate agents typically have a selection of rental properties in their local area, often before they’re advertised online.
Working with an agent has the following advantages:
- Expertise: Agents are familiar with the rental market and can suggest suitable areas and properties based on your needs.
- Reliability: Agents verify the details of properties and landlords before advertising them. You can feel more confident the information is accurate.
- Support: Agents can handle paperwork and payments while doubling as a point of contact for any issues. They aim to find long-term tenants, so they’ll work to resolve any problems.
However, some agents charge hefty admin and renewal fees. It may also be more time-consuming to arrange viewings through an agent when navigating the house rental market in the UK.
Property Developers: The Most Attractive Option
While online resources and estate agents offer viable solutions for finding a rental property, there is another option that can be even more enticing: property developers.
Here’s why considering property developers like Paragon Living should be your top choice:
1. No Middleman
Working directly with property developers eliminates the need for a middleman like an estate agent. This means you can communicate directly with us, ensuring a streamlined and efficient process.
2. Fresh Listings
Property developers build houses specifically for rent, which means you’ll have access to brand-new properties—like the Sunbeam apartment complex—often not yet listed on online platforms or promoted by estate agents. This gives you a competitive advantage in securing a desirable rental property.
3. Quality Assurance
As property developers, we’re committed to delivering high-quality apartments that meet the needs and preferences of discerning renters. Our properties are designed with attention to detail and luxurious amenities, ensuring a premium living experience.
4. Personalized Experience
When you contact Paragon Living, you’ll be dealing with a team that has in-depth knowledge about the properties we develop. We can provide personalised guidance and insights, helping you find the perfect luxury apartment that suits your lifestyle.
If you’re in search of a luxury apartment in the UK, we encourage you to reach out to us at Paragon Living. As property developers, we offer a direct and attractive option for finding your dream rental property. Contact us today, and let us assist you in finding a luxurious apartment that exceeds your expectations.
Standard Additional Fees to Be Aware of
Don’t be surprised if you’re asked to pay an additional fee when exploring the UK property rental market. On the bright side, since the enactment of the Tenant Fees Bill in June 2019, many tenancy fees have been banned for renters.
Here’s what you can legally be charged for as a tenant:
- Rent: You’re responsible for paying the rent, as stated in the tenancy agreement.
- Tenancy Deposit: A refundable tenancy deposit, also known as a security deposit, can be charged. It’s capped at five weeks’ rent if the annual rent is below £50,000 and six weeks’ rent if the rent is over £50,000.
- Holding Deposit: A refundable holding deposit can be required to reserve a property. It’s capped at one week’s rent and can be retained for a maximum of 14 days (two weeks) before entering into an agreement.
- Bills: You’re responsible for paying any costs associated with running the home, such as broadband, council tax, and energy.
- Contract Changes: If you request changes to the contract mid-tenancy, landlords can charge a maximum of £50.
- Late Rent Interest: Landlords can charge interest on late rent payments, but only after 14 days and at a rate no more than 3% above the Bank of England’s base rate.
- Repairs: Landlords can charge for repairs, but the cost should be reasonable, and evidence should be provided for the cost of repairs and replacements during or at the end of the tenancy agreement.
It’s important to be aware of these permitted fees as a renter to enable you to budget properly and avoid any unexpected charges.
Your Rights and Responsibilities as a Tenant
As a tenant, you have certain rights and responsibilities to be aware of. Knowing them will help you have a good relationship with your landlord and avoid any issues in the UK house rental market.
Your Rights
- The right to live in a safe property and good repair: Your landlord is required by law to maintain the rental unit properly.
- The right to privacy and not having your landlord enter without proper notice: Unless it’s an emergency, your landlord must provide prior written notice before accessing your home.
- The right to not be unlawfully evicted: Your landlord can’t force you out of your home without following the proper legal eviction process.
- The right to not be unlawfully discriminated against: It’s illegal for landlords to discriminate based on race, religion, gender, sexual orientation, disability status, or whether you have children.
Your Responsibilities
- Pay your rent on time each month: Failure to pay rent is the most common reason for eviction. Set up automatic payments if it’ll help you avoid missing payments.
- Keep the property in good condition: You’re responsible for basic cleaning, maintenance, and avoiding damage beyond normal wear and tear.
- Obey the terms of your lease agreement: The lease outlines the rules you must follow regarding things like pets, noise, guests, and making changes to the property.
- Provide proper notice before moving out: Unless specified in your lease, you must typically provide your landlord one month’s written notice before vacating the property.
Knowing these rights and responsibilities will help establish a good relationship with your landlord. Don’t hesitate to address any issues right away to avoid more significant problems down the road. Remember that communication is vital to a successful tenancy, and you can always enjoy the best experience when you rent an apartment with Paragon Living — make an enquiry today to get started.
Frequently Asked Questions on the UK Rental Market
Is the rental market declining in the UK?
No, the UK rental market isn’t declining. The private rental sector in the UK has grown significantly over the past 20 years — there are currently 4.61 million households renting privately in England, up from 2.03 million in 2000 (more than a x2 increase in the last two decades). Moreover, demand for rental properties continues to outstrip supply, keeping rents high, especially in major cities.
How big is the UK rental market?
The UK rental market is enormous and growing, with more people renting than owning homes compared to other European countries like Romania and Slovakia. Private renting in England makes up 19% of all 23.5 million households, while social renters account for 17%. London has the largest rental market, with nearly 35% of households (over 1 million) renting privately.
Will rent go down in 2024 in the UK?
No, it’s unlikely that rents decrease substantially in 2024 or the near future. Rents are primarily determined by supply and demand — as the population grows, the demand for housing continues to increase. New housing construction has failed to keep up, creating a shortage that increases rent prices.
Some factors that could slow rent growth include:
- An increase in rental property supply: More new builds and landlords renting out properties could help satisfy demand and stabilise rent prices.
- A fall in demand for rentals: Fewer people renting and more people buying homes could reduce competition for rental properties. However, homeownership rates continue to decline, especially among younger generations, suggesting demand for rentals will remain strong.
- Government intervention: Policy changes like rent control, longer tenancies, and tenant protections could make the rental market less attractive to landlords, potentially putting downward pressure on rents. However, sweeping policy changes are unlikely in the short term.
In summary, without significant market shifts, rents in the UK will likely remain high or continue increasing for the foreseeable future. For tenants, the best strategies are to do thorough research to find good value, understand your rights, and consider renting with others to save money. While the odds may be leaning against renters, with determination, you can succeed and find an affordable place to call home.
Conclusion
This explorative guide has pointed out several truths about the UK rental market and insightful tips on how you can come out on top. In summary, do your research, know your rights, and budget appropriately. The deck may seem stacked in the landlord’s favour, but with some savvy and determination, you can find a place you love at a price that works for you.
And if you need up-scale five-star rental apartments that meet your desire for luxury and convenience, albeit at an affordable price, we’re always ready to serve you at Paragon Living. Contact us today for the best deals on luxury apartments.
