MARCH 2023
MARKET OVERVIEW
SHIFTING PRIORITIES
As we step into spring, increased activity in the rental market is anticipated, with a continued shift back to city-centre living and a rising interest in value-for-money and energy-efficient homes.
RESURGENCE OF THE CITY
As we transition from winter to spring, the rental market continues to perform well. Prices remain high, supported by the market’s persistent low stock levels. JLL project a 6% increase in rents by the end of 2023, and 20% by 2027.
As the hangover of Covid eases, city living has returned, increasing demand for value-for-money homes. 53% of properties let in the first two months of the year were flats, similar to pre-pandemic levels (Dataloft Rental Market Analytics). The average rent for a prime market property is up 13.6% year-on-year. Only in the North East and South East are prices lower. This may be attributed to renters seeking smaller, more affordable accommodation as a response to the rising cost of living.
EPC OVERHAULS
Increasing inflation and living expenses are causing concern for renters. As uncertainty surrounding energy costs lingers, renters are increasingly prioritising energy efficiency. 78% of renters considered the Energy Performance Certificate important when searching for a property (Dataloft, Property Academy). With government regulations that newly-rented properties must have an EPC rating of C or above by 2025, landlords will need to take steps to improve their score. In the last year just 53% of properties in the private rented sector had an EPC rating of C or above; however a much more promising 94% had the potential, with improvements, to achieve this rating (DRMA).
£2,800 £3,713 +13.6%£1,310 £1,629 +2.8% £14 £1,880 £2,374 +7.9% £20 £3,850 £5,245 +21.9% £47 £1,200 £1,605 –12.2% £13 £1,500 £1,875 +5.6% £18 £2,140 £2,875 –3.1% £22 £1,770 £2,232 +1.6% £20 £1,350 £1,561 +12 7% £15 £1,400 £1,697 +4.0% £16 £1,210 £1,536 +5.3% £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.
0% 2 5% 5% 7 5% 10% 12 5% 15% 17 5% 20% MAR 2022 APR 2022 MAY 2022 JUN 2022 JUL 2022 AUG 2022 SEP 2022 OCT 2022 NOV 2022 DEC 2022 JAN 2023 FEB 2023
£1,115 £2,800 £3,713
£1,157 £2,910 £3,815
£1,077 £2,600 £3,605
