Fine & Country National Lettings Market Report February 2023

FEBRUARY 2023

MARKET OVERVIEW

STAYING PUT

A SLIGHT EASE

Average monthly rents continue to rise but there are indications the supply constraints which have underpinned record rental rises are slowly beginning to ease. Rightmove report the number of available homes to rent in the final quarter of 2022 was up 13%, with the number of new properties to let up 5% year-on-year. However, significant pressure remains. Affordability concerns are a key consideration across the market and agents confirm that many renters continue to choose to renew their lease as opposed to moving¹. Landlords also prefer to retain good renters and avoid unnecessary costs. The average prime market rent is now £3,718. The 16.7% annual price growth has moderated slightly from its peak last summer.

1-IN-5 HOUSEHOLDS

More than 5 million households in England and Wales, equivalent to one in every five, now live in the private rented sector according to the recently released findings from Census 2021. The number of households living in the sector has risen 29% since 2011, with the majority (89%) renting from a private landlord or letting agency. In London there are now more than one million households in the sector, compared to 1.5 million owner occupiers. All regions in England and Wales have seen an increase in the number of households in the private rented sector since 2011, with the greatest increases observed in the East of England, East Midlands and West Midlands (Dataloft, Census 2021).

¹73% of agents stated that more than 50% of renters were choosing to renew rather than move, Dataloft Inform poll of subscribers, January 2023

£2,800 £3,718 +16.7%

Price growth in the rental market is predicted to continue throughout 2023, but there are tentative signs that significant upward pressure on rents is starting to relent.

£1,310 £1,618 +1.7% £14 £1,850 £2,334 +6.1% £20 £3,800 £5,191 +21.0% £47 £1,150 £1,589 –14.2% £13 £1,500 £1,870 +9.5% £18 £2,120 £2,892 +2.7% £22 £1,760 £2,223 +0.7% £20 £1,350 £1,562 +12 5% £15 £1,400 £1,701 +3.9% £16 £1,200 £1,458 +2.7% £15 Please

note: The change in premium rents for the North East seems disproportionately low. Some of this can be attributed to renters seeking smaller, more affordable accommodation in light of the rising cost of living. There have also been fewer particularly high value lets in the last 12 months which has lowered the premium rent threshold level.