JANUARY 2023
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
£2,800
£3,718
+16.63%
M A R K ET OV ERV IEW NEW YEAR, LITTLE CHANGE The rental market starts 2023 as it ended 2022, with demand for property outpacing supply and rental value growth firmly in positive territory.
FIRMLY POSITIVE
WHAT’S IN STORE FOR 2023?
The imbalance between demand and supply that typified the market in 2022 continues to support rental price growth as 2023 unfolds. Annual rental price growth across England and Wales is currently 9%. Apartment price growth is outpacing that of houses, at 11% versus 8.2% respectively. High levels of annual price growth in the prime markets of England and Wales is driven by activity in the capital; at £3,792 the threshold for a premium market rent in London is more than double that of any other region, with the exception of the South East. During 2022, 90% of all new rentals of £3,500 per month or more have been in the capital, of which 65% were apartments. Across the remainder of England and Wales, 94% of such rentals were houses (DRMA).
While the rental market is expected to remain busy, the level of price growth is anticipated to moderate over the course of 2023. With higher mortgage costs set to impact profit margins, UK Finance predicts that £13 billion will be lent to buy-to-let landlords for new purchases over the course of 2023 and £30 billion to landlords looking to remortgage. Both are significantly lower than in 2021 and more in line with prepandemic levels. Taxation and legislative change is once again on the Government’s agenda, with changes to Capital Gains Tax to come into effect in April. The Renter Reform Bill is set to be introduced by the end of this parliamentary session in May 2023, although it will take longer for the Bill to become law.
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 %
£1,100 £1,480 –2.7% £13
£1,500 £1,869 +9.4% £18
£1,400 £1,703 +4.8% £15
£1,200 £1,456 +2.2% £15
£1,300 £1,571 –1.3% £14
£1,325 £1,556 +12.4% £15
£1,750 £2,179 –1.2% £20
£1,850 £2,339 +9.5% £20
£2,100 £2,828 +0.6% £22
£3,792 £5,166 +13.8% £47
Source: Dataloft Rental Market Analytics
PREMIUM RENTAL MARKETS I NATIONAL I 3
20%
15%
10%
5%
0% JAN 2022
FEB 2022
MAR 2022
APR 2022
MAY 2022
JUN 2022
JUL 2022
AUG 2022
SEP 2022
OCT 2022
NOV 2022
DEC 2022
Source: Dataloft Rental Market Analytics
£1,113 £2,800 £3,718
£1,160 £2,900 £3,780
£1,066 £2,600 £3,609
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