DECEMBER 2023
£2,940
£3,854
+5.8%
M A R K E T O VE R V I E W R E N TA L G R O W T H F O R E C A S T F O R 2 0 24
As we enter the festive season, rental growth has slowed slightly, not uncommon for this time of year. However, the market remains under pressure and strong growth is expected into 2024. SLIGHT SLOWDOWN
RENTER PREFERENCES
Rents continue to rise, currently 8.9% year-on-year, however, there has been a slight monthly fall of -0.3% in November, taking average rents to £1,279 (HomeLet). After a busy summer, a small fall in rents in November follows typical seasonal patterns, although this could also indicate the beginning of a slowdown in the rental market. In the prime market, the average rent is £3,854 per month, up 5.8% year on year. Annual rental growth is positive in all regions, with the South West showing the highest rise at 16.8%. Looking forward, rents are forecast to rise in 2024, supported by the persistent supply demand imbalance, before hitting the ‘affordability ceiling’ in 2025.
More than a quarter of renters are renting out of choice rather than necessity, with 37% of renters planning to continue renting for two years or more (Dataloft, Property Academy Renter Survey 2023). The perks of renting include flexibility (6%), having a higher standard of living and access to amenities (2%) and the ability to work remotely (2%). As the temperature drops, 55% of renters would prefer to have their utility bills included in their rent, with 44% saying they would be more likely to rent a property if bills were included, rather than a property that didn’t (Zero Deposit). However, with just 12% of properties actually including bills within the asking rent (Zoopla), this may be something for landlords and letting agents to consider.
£1,190 £1,559 +6.4% £14
£1,600 £2,001 +6.6% £19
£1,500 £1,825 +4.5% £16
£1,300 £1,620 +8.4% £15
£1,400 £1,695 +2.3% £14
£1,400 £1,632 +5.8% £15
£2,200 £3,004 +16.8% £24
£2,000 £2,445 +4.8% £20 £2,350 £3,110 +2.7% £23
£4,000 £5,269 +6.7% £47
16% 14% 12% 10% 8% 6% 4% 2% 0% DEC 2022
£1,185 £2,940 £3,854
JAN 2023
FEB 2023
MAR 2023
£1,230 £3,020 £3,910
APR 2023
MAY 2023
JUN 2023
JUL 2023
AUG 2023
SEP 2023
£1,143 £2,750 £3,730
OCT 2023
NOV 2023