How is the slowdown in rental inflation positively affecting the market?

The good news that rents are not rising as rapidly must be music to your ears. As 2025 begins, rental inflation is at a slower rate compared to previous years. This is largely thanks to a 1.6% increase in rents for new lets over the first half of 2024.This was the slowest rise since 2021.

A slowing of spiralling rents

As we enter 2025, rent increases for new rentals are expected to average 3-4%, down from 8% in 2023 and 11% in 2022. The rental sector welcomes this news, though it's understandable to want more progress. It’s no secret the sector is under reform, with the Renters’ Rights Bill aiming to improve life for tenants. However, enforcement may take time, and challenges with rogue landlords persist.

A less frantic market

With demand for rental homes easing, you may have a better chance of securing your ideal home. While homes remain in high demand, reduced interest rates are helping first-time buyers transition out of renting. This could lessen competition as you search for a suitable home. However, desirable properties still move quickly, so preparation is key.

More choice

As tenants become homeowners and new developments and landlords enter the market, your choices expand. Finding the right home can be challenging, but starting your search early increases your opportunities. Virtual tours offer convenience, but nothing compares to an in-person viewing for truly assessing a property.

A glimpse into the future

With the election year now behind us, the UK rental market is settling. If you're considering a move, acting sooner might be wise. Many retiring landlords have exited the market, but new home construction in 2025 promises an increase in supply, offering positive prospects for renters. Bring the search to you The rental market continues to undergo significant changes. For guidance and peace of mind, working with a reputable agent can make all the difference. From deposit support and property maintenance to receiving tailored property matches directly to your inbox, an experienced local agent can simplify your search and help you get ahead.     

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