The UK rental market has as soon as once more demonstrated its resilience and dynamic nature.
Current figures state that the common marketed lease for newly listed properties within the UK final month was £1,787 per calendar month (pcm). The typical for the UK excluding Higher London is £1,211 pcm (and Higher London by itself is £2,989 pcm).
In our area of the North West, the common lease presently stands at £1,067 pcm.
Rents within the North West have grown tremendously.
- Rents within the North West one yr in the past (Oct 22) have been £953 pcm, a development of 11.97%
- Rents within the North West three years in the past (Oct 20) have been £937 pcm, a development of 35.02%
- Rents within the North West 5 years in the past (Oct 18) have been £723 pcm, a development of 47.53%
- Rents within the North West seven years in the past have been (Oct 16) £816 pcm, a development of 30.72%
Trying particularly at Lancaster (LA1 and LA2), the common lease in Q3 2021 was £777 pcm, for Q3 2022, it was £969 pcm and for Q3 2023, it was £791 pcm.
(Quarter 3 for Lancaster was used to calculate the common because the pattern measurement is way smaller than regional or nationwide stats).
A persistent disparity between provide and demand strongly influences this rise in rents. Demand from potential tenants is intensifying, however there aren’t sufficient UK rental properties to accommodate them. That can be true for Lancaster tenants.
As a snapshot, one of many main property portals said the common rental property within the nation now receives roughly 25 enquiries from potential tenants. This can be a placing distinction from the common of eight enquiries recorded within the pre-pandemic period.
Moreover, the variety of tenants trying to transfer inside Britain has surged by simply over 40% since 2019. On the opposite facet of the coin…
The typical variety of UK rental properties coming available on the market within the 5 years earlier than the pandemic was 117,510 per thirty days. Within the final two years, it has been 99,747 properties per thirty days, a drop of 15%.
Speaking to brokers in Lancaster, they’re witnessing giant numbers of keen tenants attending viewings as quickly as a property is listed. Such information is echoed by property and letting brokers I do know nationwide, a lot of whom spotlight the large hole between hovering demand and the restricted provide of rental inventory.
Encouragingly, although the general common of properties coming onto the marketplace for lease for the final two years is 15% down (as talked about above), that statistic does masks the truth that 2023 may be very completely different to 2022’s out there rental properties. The variety of new properties being launched to the rental market within the final ten months (Jan to mid-Oct 2023) is 6.9% greater year-on-year than the identical time from the yr earlier than (i.e., Jan to mid Oct 2022).
Whereas the continuous surge in rental costs and the mismatch between out there properties and tenants might make the market difficult for a lot of to navigate, alerts recommend an easing of this strain.
With new rental listings at greater ranges, a sustained steadiness between provide and demand might decelerate the annual development of Lancaster rental costs.
For Lancaster tenants on this tight market, being proactive is essential. Velocity is of the essence when arranging viewings, particularly amidst different commitments. Speedy property alerts on the portals and likewise cultivating robust face-to-face relationships with native letting brokers can provide a aggressive edge. Tenants should be clear about their property necessities; from finances constraints and supposed keep length. Flexibility, particularly in regards to the move-in date, could make an utility stand out. Lastly, having one’s funds and documentation prepared can expedite the tenancy utility course of.
The evolving rental panorama can be prompting many to rethink conventional preferences. Increasing search horizons past typical hotspots in Lancaster would possibly enhance the likelihood of securing a property and introduce tenants to more cost effective choices.
For Lancaster landlords, these nationwide figures and regional and city-specific statistics present a complete overview. The underlying message is evident: regardless of the rise in rental properties, the rents proceed to rise, portray a promising image for landlords who proceed to offer much-needed houses for Lancaster tenants.
As Lancaster’s trusted property advisor, we stay dedicated to conserving you knowledgeable and guiding you thru these dynamic market shifts.
when you have any questions, please get in contact. At JDG we’re at all times right here to assist.
Thanks for studying
Josh
