Greycoat Real Estate and Other Industry Experts Speak on Incoming Rental Increase

According to experts like Greycoat Real Estate, renters in the UK should brace themselves for hard times in the coming years. Many people expected housing expenses to keep decreasing post-Covid, but things are getting tougher. Statistics show that rent will hike by 25% by 2026. 


This is primarily because of the increase in mortgage rates and the supply-demand imbalance in the market today. After the COVID-19 pandemic passed, mortgages went up, thus discouraging potential homeowners. Therefore, Greycoat adds, since people struggle to make ends meet, they prefer to continue renting rather than build their homes. 


Many households have put their dream homes on hold until a time when the market will adjust downwards. According to the reports from real estate researchers, house pricing will decline by 2.5% by the end of this year. Greycoat comments that such a shift causes the annual fall to be approximately 7%. However, after this season, the rates may remain constant for a while but then begin rising again in 2025. 


Greycoat informs more on this. By the end of 2026, there may be a 10% increase in house pricing in Great Britain. When you incorporate inflation changes in the calculation, the increase experienced from the start of 2023 and the following decrease, the average house-pricing decline will be at 5%. 

Real estate team members at the representation agency and other experts in the field predict that the increase in mortgages and interest rates will cause new homeowners to set high rental charges. Therefore, Greycoat finally adds, since people don’t have enough money to build their homes, they will have to adjust to the new prices as they wait for better days ahead.