F&C Lettings Market Update July 2022

Page 1

JULY 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

£2,600

£3,446

14.75%

M A R K ET OV ERV IEW CHANGING TIMES As the government announces significant changes to the private rented sector, the rental market remains busy. Rental values continue to climb but concurrent interest rate rises mean renting is increasingly a more affordable option. PRICE PRESSURES

A FAIRER PRIVATE RENTED SECTOR

Entering the busiest quarter of the year for the rental market, rental value growth continues to climb. The average rent in England and Wales is now £1,065 and the average premium rent is just shy of £3,500, up 14.8% year-on-year. However, with the base rate rising to 1.25% last month and inflation at its highest level in 40 years, rising cost pressures are a cause for concern. Over three quarters of renters believe the cost of living crisis will have a moderate to significant impact on their ability to pay the rent. One in four renters ranks this as their top concern in the coming year¹.

Significant changes to the private rented market in England and Wales have been outlined in the government’s A Fairer Private Rented Sector White Paper. The measures are wide ranging and are set to impact many landlords. Section 21 so-called ‘no fault’ evictions and arbitrary rent review clauses will be banned, as will a blanket ban on pets, families, or those on benefits. The Decent Homes Standard will be extended to the private sector, while a new property portal will be introduced to help landlords with compliance. The Abolition of Section 21 notices is one of the top three concerns for landlords over the coming 12 months¹. ¹Dataloft, HomeLet, based on a survey of 12,000 renters and over 1,000 landlords undertaken in May 2022

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 £1,865 +15.0% £15

£1,450 £1,851 +19.3% £17

£1,200 £1,472 +2.8% £14

£1,350 £1,671 +13.5% £15

£1,295 £1,622 +13.0% £14

£1,250 £1,456 +3.5% £14

£1,750 £2,207 –1.1% £20

£1,800 £2,290 +11.8% £19

£2,100 £2,927 +6.1% £22

£3,400 £4,637 +17.1% £40

Source: Dataloft Rental Market Analytics

PREMIUM RENTAL MARKETS I NATIONAL I 3


18% 16% 14% 12% 10% 8% 6% 4% 2% 0% JUL 2021

AUG 2021

SEP 2021

OCT 2021

NOV 2021

DEC 2021

JAN 2022

FEB 2022

MAR 2022

APR 2022

MAY 2022

JUN 2022

Source: Dataloft Rental Market Analytics

£1,065 £2,600 £3,446

£1,089 £2,544 £3,283

£1,021 £2,500 £3,397

Disclaimer :This repor t is produced for general information only. Whilst ever y effor t has been made to ensure the accuracy of this publication, Dataloft Ltd accepts no liability for any loss or damage of any nature arising from its use or from any changes made to Dataloft content by Dataloft Inform users. Reproduction of all or par t of the repor t in any form is prohibited without written permission from Dataloft Ltd. Repor t edited by Inform user and published on 01-07-2022.


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