If you have a buy-to-let property in the UK, you may be one of many landlords who has
noted a significant increase in your rental property income this year.
According to Zoopla’s Rental Market Report: December 2024, the average rental cost spiked by £3,240 between 2021 and 2024.
Over the course of 2024, rents increased by 3.9%. This means that the average rental
property now is now let for £1,270 per month. However, there are regional fluctuations and
according to Zoopla’s analysis, rents are increasing faster at the lower end of the market as
tenants look to more affordable areas to make the most of their budget.
This pushes up demand in those better value postcodes. Rochdale rents are increasing at
11.9% for example, as Manchester residents look to move north of the city centre to get
more for their money. Rents are also up 10% in nearby Blackburn and 9% in Birkenhead.
The good news for landlords is that rental housing stock isn’t expected to increase in 2025.
In every region of the UK apart from the East Midlands supply continues to fall below pre-
pandemic levels, so buy-to-let investors can realistically expect a steady demand and
income over the next months. This will be driven by the high cost of first-home ownership,
and a lack of growth in the social rental sector.