In 2022 Is It Still A Renter’s Market?

Written by Sapphire Savvy Women Group.



Buying property has been a staple decision amongst many in England with people looking to buy homes as a mark of success, to feel safe and secure, and to establish an area they can grow in. We are however, beginning to see new patterns emerging, ones that Landlords should probably keep their eye on. The inevitable market surges and drops, has left many questioning: are we in a renter’s market?


KEY takeaways:

-What type of market we’re in and how landlords and investors can adapt?

-How the housing market has changed since the pandemic

-The great mortgage Versus rent debate


A renter’s market means – Even with the supply and demand ratio of properties for sale, the overall economic conditions are unfavourable for such a big investment like buying a house, so the property Market shifts toward Rental.


More and more consumers are recognising that at least for right now they are better off financially renting than buying. This is certainly a departure from the past when most consumers felt that the best financial option would be to buy rather than rent so that their money would go toward creating equity in a home.


It is no secret that the cost of housing is much higher than years ago, reports “The UK average house price for September 2021 was at a record high of £270,000.” Millennials are exploring other options to increase their quality of life – with many accepting for the moment that they can’t afford to buy a house without the help of ‘bank of mum and dad’ or sacrificing simple pleasures in order to afford housing.


People are prioritising, travelling, making memories, living in areas with lots of amenities and things to do and of course having more access to greener spaces. So why does this matter to you? (Landlords).


Let’s take a quick look into the past… pre-pandemic in 2019 the prices of rentals decreased. Across the UK, the rental average is reported to be £1,058 (2021) in comparison to £974 in 2020 – Homelet Reports. We saw a widespread trend of tenants and homeowners leaving the city in pursuit of country living, BUT while this was happening rental prices in the city were decreasing.



Savvy Tenant’s jumped in for the lower prices and accepted longer contracts and rental terms to bag the best deal.


City.AM reported “Since the third quarter of this year, rents have begun to climb again and are back up to 2019 levels and in some areas, maybe slightly higher.”


It continues by stating there is an expectation for the “trend to continue through to end of the year” which certainly is good news for landlords.


While some areas are experiencing a deficit in supply of rental properties, in other areas homeowners have recognised the wisdom of holding off on selling their homes. They, too, are reluctant to sell their homes now when it seems more prudent to wait and see when the market will stabilise.


Would-be investors who attempted to get in on the quick profit potential of flipping homes have also discovered that it makes more sense to rent out their properties right now instead of trying to sell them. Investors are discovering they simply do not have any other options when they must meet mortgage payments every month and are unable to sell their properties.


In some cases, this means renting the properties at a loss, creating a negative cash flow. This is something to be mindful of, we discuss the shortfalls of property investing and how you can look to prevent this in a previous Finance Talk Blog – just Click here



On one hand the cost of housing continues to creep along with the cost of living, salaries to do not keep up with this and thus saving for a house or buying a property is being postponed and more and more people are living at home/rentals into their 30s. Property Wire Reports in 2021 the average age of First – time buyers in London is age 35, with the rest of England at age 33. This figure is expected to go up by 0.1% on average in 2022. Compared to 2015 where the average age was 32.


Rental prices on average in Southeast England are £1,129 PCM, according to – Homelet. Monthly mortgage payments in Southeast are £935, on average in the UK the mortgage payments are £723. Renters may want to get on the property ladder but not being approved for mortgages means they are paying more for a property they don’t own. It is important to be aware there are many variable factors in working out individual mortgage payments and rates vary greatly from lender to lender.


At SWG we constantly speak on the importance of keeping up to date with the market trends. We have seen a rise in rental prices across the country since prices hit covid-lows in 2019, as we now know these prices have balanced out which is good for landlords.


Whilst mortgages continue to creep out of reach for young 20-somethings there is and will be increased demand for rentals across the UK.


As a landlord, operating with integrity should be at the forefront of your business venture. Perhaps keep in mind that the market is ever-changing and gear up for some covid – related changes. If you want to take the guessing work out of being an investor, check back with us every Monday for new blog posts, for more specific and one – one mentorship from a seasoned Investor and educator, just click here.  


The Finance Talk – blog, posts weekly on Monday’s, where you can get the latest exclusives on what’s occurring in the housing market. As professional property investors and Educators, we make it our job to know the property business -so check on in and we have you covered.


Tune into to our podcast The Property Investors Show – where you will gain POWERFUL insight from worldwide property, finance and investment experts. Learn from their tips as they get candid with host sapphire Gray on their losses and success stories.




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