Today I want to chat about the rental market. Several times a week I get asked about rental prices. These questions often get by prospective residents (tenants) and of course, new landlords to be.
There is no doubt about it. Rents have risen rapidly over the past few years. Across the UK, there has been an average increase of £135 extra per month since Q4 2022 and £450 per month since the same quarter in 2019. This has put increased pressure on tenants, especially when combined with an increase in the cost of living.
During the same period, many landlords also faced additional burdens through mortgage rate increases, changes in taxes and currently, the Renters Reform Act. Many landlords were left debating do they sell their property as it was no longer viable or increase the rent as they didn’t want to be subsiding it.
On top of all of this there has been a huge demand for rental properties, thus pushing prices up. We’ve also heard and seen many instances, where desperate tenants were offering amounts above the asking price. It was a perfect storm.
There is now some positive news coming through for existing tenants. Just one quarter (24%) of landlords intend to increase rents in 2024, while 68% intend to maintain them at current levels. 8% of landlords have indicated they have plans to reduce rents – please note this independent research carried out by Zero Deposit in conjunction with dataloft inform.
You may wonder why? Well, finding and retaining good quality renters is a key priority for landlords and highlights the importance of a good relationship, something which is important to all of us at JDG. This may explain why the majority of landlords are looking to maintain existing rents.
Talking to landlords, the main challenges anticipated in 2024 are the cost of maintaining, repairing and running properties, followed by legislative changes.
Here at JDG, we hope it’s a calmer year for our landlords and residents alike. We promise to keep you informed of what is really happening in the property market as we find out ourselves.
My name is Josh Heron. If you have any questions, please ask me. At JDG we are here to help. My email is josh@jdg.co.uk or you can call me on 01524 843322
Thanks for reading
Josh
