Rents to grow 3%-4.5% in 5 years
By |Published On: 4th November 2015|

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Rents to grow 3%-4.5% in 5 years

By |Published On: 4th November 2015|

This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.

An agency has moved to suggest that average rents in the UK will increase by between 3% to 4.5% during the next five years.

JLL predicts that average rents across Britain will increase by 4.5% in 2016, followed by 4% in 2017. Further predictions suggest that rents will then rise by 3.5% in 2018 and 2019, before slowing to 3% in 2020.


‘Despite believing that demand will increase and available supply will remain constrained, we anticipate only moderate positive rental growth on a national basis over the next five years,’ noted Adam Challis, head of residential research at JLL. ‘The main limiters are that tenants will move to smaller properties or to cheaper areas in order to ensure their rental costs suit their financial aspirations,’ he added.[1]

Research from the agency’s report indicates that nearly half of all 25 to 34 year olds privately rent, with this proportion likely to rise further in the next 5 years.

Rents to grow 3%-4.5% in 5 years

Rents to grow 3%-4.5% in 5 years


JLL indicates that the majority of British buy to let landlords are higher-rate tax payers and will therefore be significantly affected by the recently proposed tax changes within the sector. However, it believes that there will not be a significant exodus of landlords from the industry.

Challis warns that, ‘there may be slightly less exuberant enthusiasm from new investors, which may have a longer-term impact on rental supply.’[1]

Mr Challis also said that the big potential growth area within the sector is Build to Let. With this said, he also believes this part of the private rental sector, ‘will always be dwarfed in volume terms by private landlords.’[1]




About the Author: Em Morley (she/they)

Em is the Content Marketing Manager for Just Landlords, with over five years of experience writing for insurance and property websites. Together with the knowledge and expertise of the Just Landlords underwriting team, Em aims to provide those in the property industry with helpful resources. When she’s not at her computer researching and writing property and insurance guides, you’ll find her exploring the British countryside, searching for geocaches.

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