‍

Over the past few months, much has been said regarding a potential improvement in the rental market. The ability of UK politicians to fix Britain and their financial problems has been called into question following the everchanging personalities playing the role of Prime Minister, Chancellor, cabinet members, and other political leaders.

That much is true: it has been a turbulent and uncertain moment. The economy has been shaken by, at best, naive and inept schemes, but now that Rishi Sunak has been confirmed as prime minister, things seem to be considerably more stable.

As indicative interest rates increased as a result of the increased interest in government gilts and bonds, there have been warnings and expectations that the housing market may crash amid the political unrest.

But that hasn’t happened, and the UK property market has continued to be remarkably steady as is customary. The housing market is still stable, according to Property Industry Eye. After experiencing such an active market since the summer of 2020, transaction levels have remained stable month over month even as the backlog of transactions and completions continues to grow.

A different image will undoubtedly emerge from any annual comparisons, but it's critical to remember that the levels of activity observed in late 2020 and throughout 2021 were the exception, not the rule. An influx of dedicated buyers and sellers is also continuing to help house prices.

The expectation is still for UK property prices to increase in a manner similar to where they were prior to the pandemic, but there is now a prevailing belief that the subsequent influx of buyers who can no longer access the market into the rental market would accelerate and raise rental growth.

In the end, this translates into an increase in rental revenue for landlords as well as easier access to affordable property that can be added to their portfolio. This in turn creates more room for builders to construct off-the-plan homes in urban centres and popular neighbourhoods.

It’s clear that strong rental growth is likely to signal a strong year for rental income in the UK, if off-plan property isn’t on your radar, now is the time to get involved.