The rental market in London is stable and robust with the growth in values expected to be 24.5 per cent by 2021, according to a latest research by global property management services company Savills.
In its Residential Property Focus report for the last quarter of 2016, Savills noted that the rental values in London are more closely linked with incomes rather than with measures related to growth in house prices.
A major reason for a projected increase in rental values is the high price of homes, prompting more number of younger working professionals to opt for rental homes. It is also predicted that the number of people sharing rented homes will increase in the coming years also because of high cost of home ownership.
The housing inflation and high rental values in London are making other cities, such as, Bristol, Birmingham and Manchester, an attractive destination for investment in properties. Incidentally, Bristol will see the highest growth in rental value (27.5 per cent) over the next five years. The rental growth in Birmingham and Manchester is expected to be 17 per cent. The overall UK average rental growth over the next five years is forecast at 19 per cent.
If you are interested in investing in buy-to-let properties in London, contact Strawberry Star estate agents for more information.
The outlook for rents is stronger and more stable than for house prices over the next five years.