The whole housing industry in general has changed a lot during the post pandemic era. The price of renting a flat in London is already at a record high but industry observers say that this cost is going to go nowhere but up over the next five years.
This is important for several reasons; prominent real estate expert and investment professional Nick Millican said various market analysts are forecasting a rise of 23.3% for the London housing market with a slightly lower 22.2% rise for the rest of the U.K.
A primary driver of this trend is an imbalance of supply and demand that will take some time to correct, Nick Millican added. He also said that more landlords are fleeing the market because of mounting tax liabilities and burdensome red tape. London landlords have been selling up because of ever-more punitive tax levies.
At the same time, more workers are returning to their offices while fewer people can afford the price of a home. The latter means more demand for renting and the higher prices that inevitably follow burgeoning demand. He adds that the whole rents now average an eye-watering £2,287 per month. That figure is derived by averaging £2141 rent in outer London with the £3,055 cost in inner London (Crunchbase).
He said these kinds of prices produce negative effects, such as tenants being forced to move back home with their parents or outside the city. That, in turn, puts downward pressure on the qualified labor pool available to London-based business owners. New graduates naturally seek other locations to avoid sky-high rentals. Nick Millican finally states how the next five years in London and the greater U.K. real estate market promises to be interesting and perhaps not for the best reason.