Experts from Hometrack and the leading UK real estate portal Zoopla united in the opinion that a two-speed rental market is emerging in the UK. Divergent trends drive this situation in supply and demand between London and the rest of the country. While available rental properties supply has increased in the capital, it is exposed to declined demand from international tourists and is affected by work-from-home policies. Edinburgh experience a sharp slowdown in rental growth. A shift in short to long term rents and policy changes also contribute to this trend.
The contemporary exodus from Russia hurts the country demographics like the war. The country is losing its economically active population at a rate of around 100 thousand people per year since 2000, with peak years in 2013-2014.
Boris Johnson was particular in introducing new construction planning reforms in the United Kingdom in July. The first changes become valid from the beginning of August. This reform is a long-awaited and welcome change. Boosting infrastructural projects and relaxing rules for housing development will help to revive the construction sector.
The Monthly Business Survey (MBS) by the Office for National Statistics (ONS) gives insight to data, including comments from over 15,000 businesses. It confirmed that the coronavirus pandemic continues to have a significant negative impact on output. But some sectors are less affected than the others.
The report of the IFB presents the results of an investigation into the most significant UK registered businesses, as measured by turnover higher than £500m to identify the proportion of family-owned firms. This study, identified the largest family businesses, their ultimate owning entities or parent companies, and distinguished the latter from wholly-owned subsidiaries.
In England, the market is now re-open. Provided all parties are following social distancing measures, tenants, landlords and agents are free to visit properties for viewings, moving in, cleaning the property after check-out, etc.
Based on the results of the regular survey, RICS expects rents in the lettings market to fall across the UK. This is expected for the coming three months, but rents will stabilise at the twelve-month horizon. At the five year horizon, rental growth projections stand at around 2.5% per annum, in comparison with prices rising by about 2%.
