FEBRUARY 2022
N AT I O N A L L E T T I N G S M A R K E T U P D AT E
KEY STATS E N G L A ND A N D WAL ES
£2,450
£3,258
11.09%
M A R K ET OV ERV IEW T H E R E N TA L M A R K E T R E M A I N S R O B U S T The rental market has started 2022 strongly; demand for property remains high and rental value growth is currently outperforming property prices in many areas across the UK. RENTAL GROWTH OUTSHINES
LEVELLING UP
Rightmove report rental price inflation is outpacing property price growth in all but the East Midlands, South East and South West. Asking rents in the final quarter of 2021 rose at their strongest ever level. Market commentators indicate values in the capital have recovered strongly, and in many areas are now above their pre-pandemic level. As restrictions once again ease and hybrid working patterns continue to emerge, competition for available property is high. The average monthly rent in England and Wales in the year to January was up 11.6% on a year ago. In the premium markets, values are 11.1% higher, with the average rent for a premium property now £3,258.
The government’s flagship Levelling Up White Paper, unveiled on 2nd February, has set out plans to reform the private rented sector. All homes in the private rented sector will have to meet a minimum standard – the Decent Homes Standard. Section 21 ‘no fault’ evictions will be abolished. In addition, the government is set to consult on the introduction of a landlord register, with fines and bans imposed on non-conforming landlords. Research indicates that most landlords (88.2%), expect to maintain or increase their portfolio over the course of 2022/2023, with professional landlords nearly twice as likely to be considering expansion as those who consider themselves ‘accidental’ landlords (Dataloft, Property Academy Landlord Survey, 2021).
2 I PREMIUM RENTAL MARKETS I NATIONAL
REGIONAL P R E M I U M R EN T AL M A R K E T S : TOP 5 %
£1,300 £1,854 +24.7% £15
£1,350 £1,708 +10.6% £17
£1,150 £1,421 +4.0% £14
£1,295 £1,624 +10.8% £14
£1,250 £1,592 +16.4% £14
£1,200 £1,389 –2.1% £13
£1,700 £2,209 +5.8% £19
£1,750 £2,198 +11.4% £18
£2,000 £2,815 +6.6% £21
£3,185 £4,290 +5.8% £37
Source: Dataloft Rental Market Analytics
PREMIUM RENTAL MARKETS I NATIONAL I 3
12% 10% 8% 6% 4% 2% 0% -2% FEB 2021
MAR 2021
APR 2021
MAY 2021
JUN 2021
JUL 2021
AUG 2021
SEP 2021
OCT 2021
NOV 2021
DEC 2021
JAN 2022
Source: Dataloft Rental Market Analytics
£1,027 £2,450 £3,258
£1,052 £2,383 £3,060
£990 £2,500 £3,377
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