Hometrack report reveals Midlands rental values expected to increase
A new report into the UK rental market has underlined the buoyancy of the Midlands region, with rental values expected to outstrip other parts of the UK.
According to the latest data from Hometrack, rental values in the region are forecast to increase by as much as 5 per cent per annum. In contrast, London rents are expected to fall by 1-2 per cent, while the majority of the UK will see increases of around 3 per cent.
The Hometrack report charts how the rental market has evolved during the past decade, with the number of homes and renters increasing across the country since the financial crisis. In the UK, the stock of private rental accommodation has surged by a third – representing more than 1.1m homes. Naturally, this has grown in line with demand, but the impact of prices has not been consistent across the country. So, why is the Midlands seeing such high demand and strong rental values?
Birmingham can be identified as the driver of much of this growth in rental demand, where we are seeing high levels of investment in infrastructure, which, in turn, is driving demand for rental properties through job creation. This is a particularly significant time in the evolution of the UK’s second city – with HS2 on the horizon and the ongoing implementation of the Big City Plan, all under the stewardship of a newly elected mayor.
Demand for private rental accommodation in the city is already outstripping supply, which presents an opportunity for landlords to secure strong yields in prime locations.
As Birmingham continues on this upward growth trajectory and prepares itself for the next generation of workers, there are no signs of demand abating.