It has been a tricky time to be a renter in the UK in the last few years. There have been periods of rent rises, supply shortages, and other issues. It’s been hard for landlords too, with some even choosing to exit the market because of changes in regulations and financial issues. There are lots of positives though. We want to have a closer look here, then you can talk to us if you want to arrange guaranteed rent in London for assets.

Rises

The headline is that rents are up. The current average rent in the UK is £1,365. That is a massive £417 (44%) higher than in 2020. It shows how much growth there has been in rental values in the last five years.

London still retains the title of highest rents in the UK. It now costs an average of £2,712 a month to rent in the city. Notably, rent rates have increased for the last 15 consecutive quarters.

Rates continuing to rise is good news for landlords. It is more worrying for tenants, but there is a silver lining. The year on year increase is slowing, so there are signs we are approaching equilibrium. In fact, some experts said we hit the ceiling late in 2024, so a slowdown in many areas is natural.

Popular spots

There are some locations that have proven to be really hot markets for renters. It is a good idea to look at them if you’re an investor. You can then rely on us if you need guaranteed rent in London for properties.

Generally, the biggest increases have been popular commuter spots near London and Manchester. Ascot is leading the way with a 21% annual increase in rents. It’s a lovely town with great commuter links to London. Farnham took the second spot with a 19% rise in rent rates. It is another popular commuter town near the capital.

Interestingly, the third and fourth locations are both popular alternatives to Manchester. Rochdale (up 17%) and Stockport (up 15%) are both traditionally quite affordable spots. However, prices have grown, driven by remote and hybrid workers.

Students

A lot of investors target locations that are popular with students. It can be a really good strategy, providing a steady stream of potential renters every year. There are great spots in various parts of the UK. We can help if you invest and want guaranteed rent in London.

There is an important thing to keep in mind though; applications to universities in the UK can fluctuate. There were fears of a big drop off this year. However, the latest figures from UCAS say applicants were up 1.3% on 2024. The number of 18 year old applicants was up even more, growing by 2.2%. This set a new record, totalling 328,390 by the end of June.

Key factors

If you’re a landlord or plan to invest in properties, there are several key things to keep in mind. Most importantly, you need to think about tenant affordability. It is crucial to price carefully, considering the property and location. Plus, ensuring you have the ability to adjust quickly is important if you want to minimise voids.

Talk to us about guaranteed rent in London

As you can see, there are still plenty of great reasons to look at London for investment properties. The crucial thing is to think carefully about location and how high the demand is for properties.

If you do have concerns about finding tenants, voids, and other issues, there are some great alternatives for different areas in the city. Many councils in London have schemes and look to partner with landlords. They pay impressive rates, with guarantees you get a payment every single month. You’ll have no responsibility for any aspects of the leasing or managing the properties. Even more importantly, you can choose a period that works for you.

We urge every landlord and investor to consider guaranteed rent in London. It has plenty of benefits, including a fast set up time. If you have any questions about how it works, or whether a local council offers schemes, contact us. We work with councils throughout the city.