Savills forecast that by 2021 London rental prices will increase by nearly 25% while the rest of the UK is set to see a 19% rise.
Brexit nerves increase rent demands
The nervous attitude towards construction post-Brexit has been labelled the main reason behind the expected rent rises in the UK.
Large property development firms hesitated to start new developments in the wake of the Brexit decision.
This decrease in new projects meant that the gap between supply and demand in the market increased dramatically.
With younger generations priced out of entering the property ladder, they are forced to turn towards renting for longer.
This has increased the demand for rental properties within the UK market.
Savills have forecasted that this new demand will push rental prices up by an average of 4% a year.
Now is a great time to start your own property development project.
Property developments needed
The demand for rental properties is greater than the supply. This means that more new property developments are needed in London and the South East.
Buy-to-Let investors are studying the market to see the potential large returns that property investment has to offer.
That is why the demand for property development finance is also rising.
Independent property developers are looking to invest in the current housing crisis.
Contact Hunter Finance to talk about finance for your property development in London and the South East.