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U.K. Rental Property Market

Goals

To provide an overview of the U.K. rental property market that will inform an advertising and media strategy for an online property marketplace, specifically targeting renters. The overview should include: the size of the market, who the renters are and their motivations to rent, and the general trends in the market.

Early Findings

U.K. Rental Property Market

  • The rental market in England is estimated at £66.7 billion, calculated from over 4.5 million private tenants each paying £10,128 yearly, and more than 3.9 million social renters each paying £5,304 a year.
  • "London is the U.K.’s largest rental market with about 30% of rental supply."
  • The average cost of renting a property in the UK during the final quarter of 2019 was £886 per calendar month.
  • According to the Office of National Statistics, private rental prices grew by 1.3% in England, 1.1% in Wales and 0.8% in Scotland in the 12 months to May 2019."

Insights on the U.K. Rental Property Market

  • Unaffordable rent: with over 5 million households living in privately rented accommodation in the U.K., private rents are currently slightly above the 30% of income standard benchmark. The challenge of rent affordability is most prevalent among young people, with 22-29 year-olds on average having to spend 53% of their income for rent in London.
  • Generation rent: many young people are locked out of purchasing a home and have turned to renting, "with no ambition towards buying." "The proportion of 16-24 year-olds renting privately has risen from 51% in 1998/99 to 73% in 2017/18 and from 20% to 46% for 25-34 year-olds."
  • High demand, low supply of rental property: in 2019, "the number of prospective tenants looking for a rental home rose 23% annually, while the supply of rental properties fell 19% in the same time frame."
  • "Rents are expected to rise in the buy-to-let market between now and 2024, with an average 15.4% increase UK-wide in rents."

Summary of Findings

  • In the first hour of research, we were able to provide the value of the U.K. rental market, and some insights that provide a broad understanding of the market.
  • In addition to this public search, we scanned our proprietary research database of over 1 million sources and were unable to find any specific research reports that address the stated goals.

Proposed next steps:

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