NOV EMBER 2023
£2,920
£3,845
+7.6%
M A R K E T O VE R V I E W SEASONALIT Y RETURNS
Following recent surges in prices, the rental market is showing signs of returning to seasonal patterns. The market is still under a lot of pressure, with demand greatly outweighing supply. SLIGHT EASING
SUPPLY CONSTRAINED
The average monthly rent rose again in October, reaching a new high of £1,283. The pace of growth has however slowed slightly, with a smaller monthly increase (+0.5%) than a year earlier, meaning that the annual growth rate has dropped below 10% for the first time since April (HomeLet). Void periods lengthened from 14 days to 18, a signal that the demand is cooling as we move into the quieter winter months (Goodlord). However, demand continues to greatly outstrip supply, with 52% of agents reporting rising rents in September, although this is lower than reported in July or August, at 71% and 68% respectively (Propertymark). Time will tell if this downward trend continues.
Tenant demand fell slightly in September, as it typically does after the busy summer rental market. September saw 96 prospective renters registered per branch, down from 121 in August (Propertymark). Supply remains constrained, the number of homes available to rent is 35% down on 2019 levels, although up 14% from last year (Rightmove). In the prime market, average monthly rents continued to grow in October, reaching £3,845, another monthly rise and an annual increase of 7.6%. Rents rose in all regions, with the South West seeing the strongest annual growth. The government has announced that Section 21 ‘no fault’ repossessions won’t be abolished until ‘significant progress’ has been made to improve the courts, news which has been welcomed by landlords.
£1,180 £1,566 +9% £14
£1,600 £2,002 +6.4% £19
£1,500 £1,833 +5.1% £16
£1,300 £1,612 +7.6% £15
£1,390 £1,684 +1.7% £14
£1,400 £1,630 +5.5% £15
£2,150 £2,990 +16.1% £24
£2,000 £2,449 +4.7% £20 £2,300 £3,045 +0.5% £23
£4,000 £5,276 +6.8% £47
16% 14% 12% 10% 8% 6% 4% 2% 0% NOV 2022
£1,177 £2,920 £3,845
DEC 2022
JAN 2023
FEB 2023
£1,221 £3,010 £3,906
MAR 2023
APR 2023
MAY 2023
JUN 2023
JUL 2023
AUG 2023
£1,135 £2,750 £3,731
SEP 2023
OCT 2023