Rental Demand Surge: What This Means for Investors in 2025

Posted

January 22, 2025

Rental Demand Surge: What This Means for Investors in 2025

The rental market in the UK is experiencing an unprecedented surge in demand, and savvy property investors are paying close attention. Key regions such as Liverpool, Leicester, and the Fylde Coast are emerging as hotspots, driven by shifting tenant demographics and robust rental trends. Let’s delve into the statistics, examine the factors behind this surge, and explore what it means for your investment strategy.

The Numbers Behind the Demand

  • Liverpool: Rental demand in Liverpool has risen by 18% year-on-year, with the city’s growing population of young professionals and students driving the need for quality housing. The average rent in Liverpool has increased to £1,200 per month, reflecting a 12% year-on-year rise.
  • Leicester: Leicester’s rental market is booming, with demand increasing by 22% compared to last year. Affordable living costs and a thriving student population contribute to the city’s popularity, with average monthly rents now at £950.
  • Fylde Coast: Known for its scenic charm, the Fylde Coast has seen a 15% growth in rental demand as more families and retirees seek tranquil yet connected living environments. Here, the average rent stands at £800 per month, up by 10% year-on-year.

Tenant Demographics: Who’s Renting?

Liverpool:

  • Young Professionals: The city’s expanding tech and creative industries attract a workforce seeking modern, urban living.
  • Students: With top universities like the University of Liverpool, student demand remains a constant driver.

Leicester:

  • Students: Home to De Montfort University and the University of Leicester, the student population contributes significantly to rental demand.
  • Young Families: Leicester’s affordability and strong community networks appeal to young families seeking long-term rentals.

Fylde Coast:

  • Retirees: The coastal lifestyle and affordable rents make this area popular among retirees.
  • Commuters: Proximity to larger cities like Preston and Blackpool ensures demand from commuters.

What This Means for Your Returns

Rising rental demand translates directly into higher potential yields for investors. Here’s how:

  1. Higher Rents: With demand outstripping supply, landlords are positioned to increase rental rates, boosting returns.
  2. Lower Vacancy Rates: High demand ensures that properties are occupied more consistently, reducing void periods.
  3. Tenant Longevity: Areas with a mix of students, professionals, and retirees ensure a steady stream of tenants, minimizing turnover risks.
  4. Capital Growth: The growing appeal of these regions not only enhances rental income but also contributes to property value appreciation over time.

Why Invest Now?

With demand at an all-time high, 2025 is the ideal year to enter or expand in the rental market. Strategic investments in Liverpool, Leicester, and the Fylde Coast can offer strong yields, consistent occupancy, and long-term growth.

Explore High-Demand Rental Properties Now

Portico Invest specializes in identifying high-yield rental opportunities in the UK’s most sought-after locations. Whether you’re a seasoned investor or just starting, our expert team is here to help you make the most of this rental demand surge.

Find out how Portico Invest can kickstart your investment!