Rental growth forecast downgraded thanks to cooling demand
Original Article Summary
Rents are only expected to inflate by 1.0% in 2025, after Hamptons downgraded its forecast from 4.5%. So far this year tenant demand is 11% lower year-on-year, as well as 20% lower than 2019 levels. Hamptons attributed this to falling mortgage rates, which have helped more tenants get on the housing ladder. First-time buyers purchased […] The post Rental growth forecast downgraded thanks to cooling demand appeared first on PropertyWire.
PropMatch Curated Analysis
Hamptons has dramatically downgraded 2025 rental growth forecast from 4.5% to 1.0% due to cooling tenant demand, driven by falling mortgage rates enabling more renters to buy and job market weakness. However, structural supply shortages and regulatory changes are expected to drive medium-term rental growth.
Investor Relevance
Critical for rental yield projections, acquisition strategies, and portfolio planning. The significant forecast downgrade affects immediate cash flow expectations while medium-term supply constraints and regulatory costs (Renters' Rights Bill, EPC requirements) suggest future rental growth potential but higher compliance costs.
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