Key Takeaways:
- Explore all the top 10 short-term rental market trends that can minimise your hassles for 2024 investments.
- Associate with a professional agency which can help you bypass the legalities of purchasing a new short-term rental property in 2024.
Are you looking to expand your real estate investment portfolio in 2024?
Do you want to know all the short-term rental market trends beforehand?
Well, you are at the right place and at the right time. With 2024 starting, the short-term rental trends are already taking shape.
The short-term vacation rental market is estimated to expand at a CAGR of 10.80% through 2034.
That’s where we can help you leverage the opportunity by helping you go through the top predictions for the short-term rental market for your informed decision-making.
So, without further ado, let’s get started.
10 Short-Term Rental Market Trends and Predictions in the UK
Here are the short-term rental market trends and predictions for 2024 in the UK that you can miss out on:
Rental reforms
In 2023, the UK government introduced a bill that focused on changing different aspects of renting, like banning certain evictions and making it simpler for tenants to keep pets.
2024 these reforms can become laws, but they must pass through different government stages. But with general elections around the corner, the process can be delayed.
You must be aware of the situation related to the reforms before making an investment decision in the short- or long-term rental market.
Landlords are selling more properties
There has been a change in the sentiments of property owners in the UK. Many landlords are considering selling their properties because of rising costs and law changes.
By the middle of 2024, many of the landlords will be listing their properties in the UK for sale, and if there are tax changes, the trend can extend further. It can present a great opportunity to acquire a decent property at a decent price point.
Impact of the General Elections
By early 2025, the next general election will occur, impacting the short-term rental market. Political parties can encourage landlords and tenants to gain their votes by raising their issues and addressing rental market issues.
It can result in changes in the laws and new policies affecting renting and property ownership.
Rents are rising slow
Although the rents have been rising steadily until now, in 2024, the rise can witness a slowdown.
What could be the reason, you might wonder?
Because of the rent increase, many tenants find it difficult to afford higher rents, even in the short-term rental market. It can result in a meltdown of the rent prices because of the demand shrinkage.
Energy efficiency
In 2023, the UK government decided not to enforce more strict energy efficiency standards for all the rental spaces in the country.
But it came as a surprise for many individuals.
Why?
Energy efficiency is a key topic globally, and it will gain limelight in the UK in 2024.
The climate change concerns and the rising electricity bills across the county can spice up the decision in the assembly, and the government can plan to make rental homes more energy-efficient.
Regulation in short-term properties
The UK government is also planning to regulate short-term rental properties more strictly. In 2024, new rules about managing and operating your properties might exist.
So, should you be worried?
Of course not. You just need to be updated with the new regulations and rules and make informed decisions based on the results.
Licensing requirements
There were many licensing requirements for the landlord in the UK to ensure that the buyer met certain standards before finalising the purchase.
The trend will continue in 2024, with more additions, but the overall hassles can be minimised.
Mortgage cost trend
Although the interest rates have recently stabilised after a topsy-turvy journey, many landlords have noticed their mortgage payments increase between 2022 and 2023.
You can be cautious about this trend, which can continue in the coming years, impacting the profitability of renting out properties.
Property listings will become important
You must provide detailed information about your property to ensure your property listings are approved. Include details like property features, utilities, flood risk, and planning permissions to ensure no stones are left unturned.
The rise in competition between listing portals and the increase in regulations showcases the trend that only detailed property listings will be visible to the customers.
Increase property tax
Although some tax breaks exist, landlords can face higher taxes due to frozen income tax thresholds and other tax changes. Consult your accountants and property advisors, who can help you lower the impact on your profits.
Regarding property advisors, you must associate with professionals who can help you bypass all the complications of purchasing a short-term rental property.
That’s where you can trust Pluxa Property services.
Associate with Pluxa Property
Pluxa Property can help you make a plan that fits with what you want from your investment. Whether you want to make short- or long-term rental market investments, our professional team can help you find the best properties based on your budget and requirements.
We ensure that you stay updated with all the latest trends and new laws to avoid any future complications. Our guidance includes understanding the local market ecosystem, planning pricing strategies, and helping you with local partnerships.
Get in touch with our team now.
FAQs
1. What is the future of the rental business In the UK?
In 2023, there were over 432,000 short-term rental properties in the UK. The growth of short-term rentals is expected to continue, with Statista projecting a 0.66% growth from 2023 to 2027
2. How big is the short-term rental market in the UK?
The UK Short-Term Accommodation Association is huge. The market volume will be around $4.76 billion in 2027 because of the need for larger accommodations for tourists visiting for an extended time.
Peter Juhasz is the founder of Pluxa Property, the biggest property investment company in UK and Group CEO of AIP Capital Group and a property investment expert with over a decade of experience in the UK market.
He built a successful property company using innovative cashflow strategies like Serviced Accommodation and HMOs, scaling to 200 units in four years.
Peter leads a team specializing in property and business acquisitions across various sectors. A former co-host of “Cashflow With Property,” he shares his expertise in real estate investing and business scaling.
He is committed to continuous learning and helping SME owners and investors maximize their returns, driven by his passion for empowering others to achieve their financial goals.
To learn how Pluxa Property can help you in UK property investment, contact our experts.
