Mainstream Rental Forecasts

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The rental market has always varied across the country, but the impact of Covid-19 has driven this variation to new heights. The pandemic, and related lockdowns, has meant a unique combination of factors have disrupted the relationship between supply and demand, causing rental falls in some city centre markets but supporting the market for larger properties in other locations.

As the vaccination programme is rolled out Savills expects the mainstream market to progressively normalise; reversing some of the Covid-19 specific trends seen in 2020. In time, they expect rental growth to become primarily dictated by growth in incomes, much as it has done in the past. But, given the prospects for the wider economy, Savills foresees a period when the mainstream rental market remains price sensitive, to be followed by a burst of stronger rental growth that they have pencilled in for 2022.