The rest of 2021 for UK expats and foreign domestic investors
Liquid Expat Mortgages predicts which trends will continue and which new trends will emerge by 2021 for the UK rental market.
– Stuart Marshall
MANCHESTER, GRAND MANCHESTER, UK October 4, 2021 /EINPresswire.com/ – During the pandemic we have seen the rental market become exceptionally busy. Rental time has fallen to extremely low levels and demand for rental properties has exceeded supply, putting upward pressure on rental prices. But the face of the rental market is still changing. After a tumultuous 2020 and a first half of 2021, overseas travel is making a comeback and the stamp duty holiday is over. Fall is sure to bring more changes as the market continues to evolve in response to the development of the ‘new normal’. Here is Liquid Expat Mortgages’ forecast for the UK rental market for the remainder of 2021.
Downtowns will continue to gain in popularity.
Since the loosening of the lockdown and the rollout of the vaccination program, people have started to return to city centers while searching for rental properties. British expats and foreign investors have also started to return to the UK for work, study or personal reasons.
Downtown yields have fallen from 4.7% in 2020 to 5.3% in 2021 as tenants begin to return to the downtown area. We have already noted this feedback. However, this is a trend that we will continue to follow as it continues through the remainder of 2021. Rents in London increased almost 5% between April and June 2021. International travel becoming more common and more affordable, rents in London will only get stronger for British expats and foreign investors looking for real estate in the capital over the coming months. Lenders have created many new products to attract UK expats looking to buy UK property. These investors should take advantage of slightly depressed prices in the British capital and the inevitable rise in rents. In the rest of the country as well, city centers present a strong investment prospect for British expats and foreign nationals, with the average rental yield in cities outside the capital falling from 5.9% to 6.2% . This explains the increased demand for UK expat mortgages entering our demand funnel.
The rapid growth in demand for city center rental properties in the UK after Easter was a strong indicator of the continued demand that we have seen – and will continue to see – in 2021. Edinburgh has seen a 26% increase in demand after Easter, with Leeds and Manchester experiencing an increase of 12% and 5% respectively. British expats and foreign nationals who manage to get ahead of this trend are now expected to generate strong returns throughout 2021 and into the future as well, as long-term rental property becomes more and more normalized in today’s culture. ‘hui.
With a principle plan to tackle Covid throughout the fall, the return of social venues like bars and restaurants, and continued strong vaccine uptake, British expats should really look to city centers. for affordable properties, strong rental yields and capital growth. Lenders have remained optimistic despite the pandemic and continue to forecast growth. They also make available a wide range of products to meet the mortgage needs of expatriates in the growing mortgage market for rental, residential, commercial and growing.
Family homes will continue to be popular.
British expats and foreign nationals should also pay continued attention to family homes when looking for rental property. Family homes have been one of the big winners in the locked-down housing market – with record price hikes and rapid adoption. But this trend is not going anywhere as people keep looking for more space. Family houses equipped with modern facilities, period family houses, outdoor spaces and offices are also of particular interest and are sure to gain even more value.
Family houses will also continue to be profitable for UK expats and foreign investors, as the supply of family houses in the rental market remains low. The inflated price of family homes has helped many homeowners sell this type of stock to capitalize on the strong growth. This means that there are far fewer family homes on the rental market than before the pandemic, which is contributing to the upward pressure on rental prices. Another factor contributing to these high prices is the consistently high tenant turnover rate for this type of property, which means the supply remains low.
Properties in the suburban belt to remain in demand.
With an extremely low stock of rental properties in the countryside and the reopening of city centers, suburban properties are expected to be extremely popular through the remainder of 2021. For those looking for more space but cannot rent in the country, Suburban properties are the perfect middle ground for renters who find the downtown area too small but still want to experience all that the city has to offer. When looking for an investment property in this area, the proximity to green space and additional rooms that can serve as an office to facilitate working from home will add value and appeal to your rental property.
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