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The Hull rental market continues to evolve as we head into the latter part of 2024. Despite broader economic uncertainties, including the cost-of-living crisis and shifting interest rates, Hull remains a relatively stable and affordable option for renters. Here’s a look at the latest rental market trends in the region, providing key insights for landlords and investors.
1. Rising Demand for Affordable Rentals
The demand for rental properties in Hull has remained strong in 2024, with many tenants looking for affordable options amid rising living costs. As property prices in larger cities like Leeds and Manchester continue to rise, Hull remains an attractive location for renters seeking more value for their money.
Affordability is a key factor driving Hull’s rental market. The average monthly rent in Hull is still significantly lower than the national average, making it a desirable option for young professionals, students, and families alike. With an increasing number of renters unable to afford homeownership, we expect this demand to persist, especially in affordable neighbourhoods close to the city centre and public transport links.
2. Increasing Rents
In line with national trends, rents in Hull have seen moderate increases in 2024. This can be attributed to inflation, higher interest rates, and greater landlord costs, such as energy efficiency upgrades and property maintenance. While Hull remains more affordable compared to other cities, the rising rents are putting pressure on tenants and driving competition for properties.
According to Rightmove’s September report, the average rent for a two-bedroom property in Hull has risen by 4% compared to last year. This steady growth in rental values provides a positive outlook for landlords, offering an opportunity to maximise rental yields.
3. Student Market Continues to Thrive
Hull’s student rental market remains a critical segment. The University of Hull continues to draw a strong student population, contributing to demand for shared accommodations and HMOs (Houses in Multiple Occupation). Areas like Newland Avenue and Cottingham Road remain popular for student lets due to their proximity to the university and vibrant local amenities.
Landlords catering to the student market should focus on providing well-maintained, fully furnished properties with modern amenities, as competition for quality accommodation is high. The student market typically benefits from long-term tenancies, which can offer reliable income streams for landlords.
4. New Regulations and Their Impact
Recent regulations, including Awaab’s Law, are making compliance more demanding for landlords. These changes, along with stricter energy efficiency standards and the Renters Reform Bill, mean that landlords must be more proactive in managing their properties. While these measures are designed to improve tenant safety and sustainability, they also mean increased costs for landlords, particularly those managing older properties that require upgrades.
Hull’s rental market is feeling the impact of these regulations, as landlords balance investment in compliance with the potential for higher rental yields. Those who stay ahead of these regulatory changes will position themselves better in the long run.
5. Future Outlook
Despite challenges, Hull’s rental market remains resilient. The city’s affordability, combined with its growing appeal as a hub for students and professionals, ensures that rental demand will remain strong through the rest of 2024. However, landlords should stay informed about regulatory changes and be prepared to adapt their strategies, particularly as the market adjusts to new legislation and economic shifts.
At Lime Property, we provide expert advice and comprehensive property management services to help landlords navigate the evolving market. Whether you’re looking to maximise your rental yield or stay compliant with new regulations, our team is here to support you. Contact us today on 01482 216060 to discuss how we can help manage your Hull rental property.
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