Greycoat real estate specialists comment on the UK´s current housing trends. With rising rental costs in the UK market, you would think tenants would not pay rent on time. Families must juggle the cost of living, utilities, loans, and other expenses, and rising rent prices are taking budgets to their limits.
So, it’s surprising to know there is a notable drop in late, missed, or overdue rental payments. From December 2023 to March 2024, there was a decline in late, missed, or overdue payments. Property owners and real estate agents find this promising despite the grim situation. Greycoat informs how the two of them are working together to keep costs low. However, landlords want to make enough money to pay their mortgages.
That’s a fine line, and the balancing act is working. With inflation continuing to decline, the goal is that interest rates will fall, too. That will lead to even lower rental costs, which means tenants pay less to the property owner. As Greycoat has observed, that trickles down to the tenants’ budget; they keep more money in their pockets.
Another reason to hope for the best is the demand, Greycoat adds. New tenants are not vying for rental property space in droves like in previous months. That means the demand for property is decreasing. Decreasing demand lowers rent prices.
The team at Greycoat Real Estate is ecstatic to hear that despite rising rental prices from landlords and tight budgets from tenants, few have missed payments. That is a sign that tenants are making ends meet. Eventually, we will hear about tenants paying less to their property owners because inflation and interest rates are low. For now, we celebrate the small victories.