What Renters Want in 2023 – Flats and the City Centre Coming Out on Top.
According to property portal, Zoopla, consumers are looking for apartments in 2023. This is particularly true of city-centre apartments or apartments with a close proximity to big cities. In their report, Zoopla note that there has been a 5% increase in the number of buyers looking for one- and two-bed flats (now 27% of buyers). This is even more acute in more expensive markets, for example in London where 49% of buyers are looking for this type of property – a 7% rise from last year. ‘This demand for apartments and more cost-effective properties is not only confined to the sales market’ says Stuart Marshall. ‘Renters are also looking toward smaller properties, with a focus on the city-centre. There are a number of reasons for this. For one, flats are typically cheaper to rent and in such a competitive rental market where there is constantly upwards pressure on pricing, flats are winning out compared to other property types. The extremely high energy prices are also a reason that renters are choosing flats, as flats are typically more energy efficient, more modern – meaning they usually have a better EPC rating – and they have a smaller footprint so are easier to heat. Proximity to the city centre is also winning out as renters choose to be close to the workplace and social hubs.’
Why is this Important?
Knowing what renters want in 2023 is incredibly important for UK expat and foreign national investors as having a desirable property will maximise the likelihood of a quick let, shorter void periods, and higher rental yields. With the incredible popularity of flats and city centre flats at the moment, this is the clear choice for many UK expat and foreign national investors. ‘We have many chats with UK expat and foreign national investors looking to invest in UK property where our client doesn’t know what type of property to choose. After all, there are so many options, not only in property type, but in property sector and so on. The growing popularity of city centre properties and flats is a good sign for UK expat and foreign national investors. For one, it gives them a clear idea of which types of property they should be looking at. However, these types of property are also highly mortgageable, providing UK expat and foreign national investors the opportunity to utilise some of the excellent UK expat and foreign national mortgage products available at the moment. The types of renters that look for these properties are also usually quite desirable, as many of these renters are young professionals looking to be close to their workplace and social hubs. Of course, talking to an expert UK expat and foreign national mortgage broker will help investors to further narrow down their location and make the best possible investment decision.’
Is it a Good Time to Invest?
Properties are currently falling in value in the UK. The strain on household budgets along with higher mortgage rates is limiting buying power and this is leading to greater numbers in the rental market. ‘The current market is making for an incredibly strong investment proposition for UK expat and foreign national investors, as lower property prices are making it easier for UK expat and foreign nationals to invest. Further, UK expat and foreign national investors are coming into the market at a great time, with the demand for rental properties sky-high! According to property portal Zoopla, demand for rental property is currently 46% above average and supply is 38% behind the average. This mismatch between the demand and supply means that the UK rental market is home to fierce competition – the kind that UK expat and foreign national investors can capitalise on. Because of this competition, rental prices for new tenancies are on average 12% more expensive than a year ago. Popular city centre locations are seeing price increases as high as 15% for new tenancies. Even existing tenancies are seeing an average increase of 4%. From these figures, it’s clear to see why it’s a good time for UK expat and foreign national investors to be coming into the market.’
‘The market conditions are definitely influencing how many people are in the rental market at the moment’ says Stuart Marshall. ‘But people forget that there has also been a huge paradigm shift towards renting more generally. This is particularly true amongst younger people. Many young people feel like they missed out on a lot of the things they value during the pandemic – namely socialising, eating out, and travelling. For that reason, many younger people are choosing to rent to facilitate a more fluid lifestyle, where they aren’t ‘tied down’ by a mortgage. Accordingly, there has been an increase of 28% in rental households over the last ten years, according to the latest England and Wales Census. This change means that the rental market is likely to continue growing in the future, which is a great reason to invest. With this in mind, an expert UK expat or foreign national mortgage broker will be best positioned to help investors find the right property, which will yield profits long into the future.’
Liquid Expat Mortgages
Ground Floor, 3 Richmond Terrace,
Phone: 0161 871 1216
Any media enquiries please contact Ulysses Communications.
+44 161 633 5009