Posts with tag: rental demand

England rental hotspots highlighted by latest lettings research

Published On: April 4, 2022 at 10:53 am

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Categories: Lettings News

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Top five UK rental hotspots for landlords in 2023

Areas with the most rental demand have been highlighted by research from lettings agent Barrows and Forrester.

The research looked into demand from tenants based on the ratio of available rental properties that have already been let.

The Barrows and Forrester Rental Demand Index monitors rental listings across the nation, taking an average demand score for each English county based on which has the highest number of properties already let as a percentage of all rental listings.

The analysis of all 49 English counties shows that, on average, 40% of all rental properties listed on the market during the first quarter of 2022 had already been let.

West Sussex has seen the most demand, where 69% of all rental properties had been already let in Q1. Demand is also strong in Cornwall (65%), Wiltshire (63%), Suffolk (60%), Bristol (59%), the Isle of Wight (57%), Dorset (56%), Shropshire (55%), Rutland (55%) Somerset (54%) and Cambridge (54%).

Rental demand is at its lowest in West Yorkshire, where just 19% of all listed rental properties have been taken by tenants. Demand was also lower in Leicestershire (22.9%), West Midlands County (23%), the City of London (26%), Merseyside (27%), Lancashire (29%), East Riding (30%), South Yorkshire (31%), Tyne & Wear (31%), and Lincolnshire (32%).

James Forrester, Managing Director of Barrows and Forrester, comments:“We’ve seen a fairly strong start to the year where rental demand levels are concerned, although it’s fair to say that an air of pandemic influence remains despite a return to normality after what has been a strange few years, to say the least.

“Demand across more urban and industrialised areas of the is still slightly more muted compared to pre-pandemic levels, while country and coastal pockets of the market continue to see very high demand. 

“It will be interesting to see how this balance shifts over the coming months as we expect that demand for rental properties across major cities, in particular, will start to build considerably.”

Demand for private rental housing at record a high

Published On: November 29, 2021 at 10:12 am

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Categories: Landlord News,Lettings News

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SpareRoom study shows most affordable places to rent in the UK

Demand for private rental housing is at an all-time high according to new research being published by the National Residential Landlords Association (NRLA).

A survey of private landlords across England and Wales, conducted in partnership with the research consultancy BVA/BDRC, found that 57% confirmed demand for private rental homes had increased in the third quarter of 2021. This is up from 39% in the second quarter of the year.

At the onset of the first COVID lockdown in the second quarter of 2020, just 14% of landlords reported an increase in tenant demand.

In a sign of recovery in the market, landlords operating in London have seen a significant uptick in demand compared to the levels reported throughout the pandemic as workers returned to the capital.

68% of landlords operating in outer London reported an increase in demand, up from 25% in the third quarter of 2020. In central London, 54% reported increased demand, up from 16% at the same time last year.

Elsewhere, landlords operating in the South West reported the strongest demand with 79% saying that demand had increased in the third quarter of the year. This was followed by 74% in the South East (excluding London), 73% in Wales and 71% in the West Midlands.

Despite the booming demand, the same proportion of landlords plan to reduce the number of properties they rent out as planned to increase them at 19%.

It comes as the Royal Institution of Chartered Surveyors has warned of rents increasing due to the “mismatch between supply and demand.”

Ben Beadle, Chief Executive of the NRLA, comments: “As demand picks up following lockdown measures, we need a stimulus to support responsible landlords to provide the homes to rent we vitally need. Without this, it will ultimately be tenants that suffer as a result of less choice, higher rents and the resulting difficulties they will encounter when looking to become homeowners.”

Demand and supply for rental stock drops across UK

Published On: April 24, 2020 at 8:48 am

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Categories: Lettings News

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Safest areas to live in the UK

The latest data from lettings management platform Howsy reports a decline in rental stock levels compared to this time last year.

Rental stock has dropped 12% across the UK’s major cities, with London seeing 20% fewer rental properties now on the market.

Belfast, Cambridge and Newport have been hit the hardest, seeing declines of -57%, -36% and -27% respectively. Comparatively, Edinburgh, Swansea, Leicester, Sheffield, Leeds, Southampton and Plymouth have seen an increase in rental homes available on the market.

Meanwhile, demand has dropped by 5% across 23 major UK cities and 3% across London. Belfast is the only city on Howsy’s list that has seen an increase in demand, at 16%. Portsmouth and Newcastle saw no annual change.

Calum Brannan, founder and CEO of Howsy, said: “The spread of the Coronavirus has clearly caused an immediate impact on rental demand and stock levels across cities which usually remain sought after amongst tenants.

“For market activity to have fallen so considerably across the board tells you just how much the market has been impacted by the pandemic, but while demand has waned somewhat on an annual basis, it is stock levels that have declined the most and there are still plenty of tenants looking for rental properties for those landlords still striving to provide them. 

“For these landlords, remaining visible on the market despite the wider landscape is the sensible approach to ensure any void periods are as short as possible and any financial loss is as limited as can be.  

“This can be done via online and hybrid agents in particular, who can list and rent your property without any physical interaction needed; so not only does your buy-to-let remain profitable, but there is no risk in doing so.”

Demand for rental property surges in January

Published On: February 23, 2017 at 10:48 am

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Categories: Property News

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There was a surge in demand for rental accommodation during January, according to the latest report from ARLA Propertymark.

Data from the investigation shows that there were 34 would-be tenants per ARLA membership branch last month, in comparison to the 26 seen in December. This represented a rise a 31% month-on-month.

Year-on-year, demand has risen by 10%.

Supply Increases

In addition, the number of rental properties being managed by letting agents also rose in January. Last month, there were 193 properties managed per branch, as opposed to 188 in December.

What’s more, there has been a 12% year-on-year rise.

23% of agents saw their tenants experiencing rental rises during January. However, this is less than the 30% seen in January 2016.

Demand for rental property surges in January

Demand for rental property surges in January

David Cox, Chief Executive of ARLA Propertymark, said: ‘As expected, the New Year brought with it a flurry of activity in the rental market. While supply of rental stock rose slightly, the number of prospective tenants increased by a much bigger margin. When supply and demand are out of kilter, as they have been for so long now, the market isn’t balanced and fair for tenants and rent prices will just continue to rise.’[1]

‘Worse still, should the Government decide to implement an out-right ban on letting agent fees when the consultation takes place, the situation will likely get worse for tenants. The costs of the vital services letting agent fees cover will need to be recouped, and this will get passed on to renters in inflated rental prices. This, combined with new landlords’ tax, particularly the upcoming changes to mortgage interest release, means the rental market is far from reaching equilibrium,’ Mr Cox added.[1]

[1] http://www.propertyreporter.co.uk/landlords/demand-for-rental-accommodation-sees-january-spike.html

 

Rental Housing Supply Rises to 18-Month High

Published On: October 24, 2016 at 9:13 am

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Categories: Property News

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Rental housing supply rose to an 18-month high in September, according to the latest study by the Association of Residential Letting Agents (ARLA).

Rental housing supply

In September, letting agents managed an average of 193 properties per branch, up from 183 in August and the highest level recorded since April 2015, when there were also 193 rental properties registered per branch.

Rental Housing Supply Rises to 18-Month High

Rental Housing Supply Rises to 18-Month High

Rental housing supply had dropped to lows of 171 so far this year. Therefore, the jump in September paints a positive picture for tenants, amid industry-wide expectations of post-Brexit uncertainty.

Demand for rental property

Demand for rental property also grew in September, with 40 prospective tenants registered per letting agent branch, compared with 37 in the previous month.

In line with expectations, demand for rental property has been steadily increasing since the start of the year and is now at the highest level since February 2015, when there were also 40 hopeful tenants registered per branch.

Rent price growth

The amount of letting agents recording rent price growth is at the lowest level so far this year, with just 24% of agents reporting increases for tenants.

This is down by 3% on August, when 27% of agents saw rent rises, and 8% down on this year’s high of 32% in March.

The Managing Director of ARLA, David Cox, comments on the figures: “This month’s findings paint a really positive picture for renters. Although demand is rising, we’ve seen this happen gradually over the course of the year, and would expect it to slow again in line with seasonal trends over the next few months.

“On the other hand, the supply of rental stock has risen astronomically, which suggests it’s not quite right that landlords are pulling out of the market as a result of Brexit. This is supported in our findings, which reveal the number of landlords selling their buy-to-let properties hasn’t changed since April, when three landlords were selling up per branch.”

He continues: “It’s good to see less landlords hiking rents this month, but 24% is still too high. The cost of renting is already high in many parts of the country, and until the Government converts its pledges and promises into bricks and mortar, we won’t see renters reach a position where they’re able to save to get on the housing ladder. It will be interesting to see how this is tackled in the upcoming Autumn Statement.”

Tenants may be disappointed to learn that the Government’s Help to Buy scheme will be scrapped in December this year.

However, the new Housing Minister, Gavin Barwell, has spoken out in support of the private rental sector, pledging to make renting more affordable and stable for the nation’s tenants.

Demand for rental property remains high

Published On: September 29, 2016 at 11:18 am

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The latest report from the Association of Residential Letting Agents (ARLA) indicates that demand for would-be tenants increased during August.

There were 37 prospective tenants registered per ARLA branch during August, the highest number since June.

Ups and downs

Data from the report shows that in the first half of 2016, there were signs that demand was dropping, with month-on-month figures down on the same periods in 2015.

However, the last three months has seen a rise in annual demand.

In August, the number of rental properties available by member branch stood at 183. This was one lower than in July. Year-on-year, supply increased by 3%, with August 2015 seeing an average of 178 properties per branch.

Rising rents

Tenants negotiating rent reductions actually increased during August to the highest levels seen since records began at the beginning of last year. Members of ARLA said that around 3% of tenants got a rent reduction last month, in comparison to 2.1% in July.

Last month, 51% of ARLA members reported some signs of uncertainty from those looking to rent, or looking to let, following the Brexit vote.

This however seems to have had little impact on the rental market. During the last month, there were no reported changes in rent prices, supply of properties or demand.

Demand for rental property remains high

Demand for rental property remains high

Good shape

David Cox, Managing Director at the Association of Residential Letting Agents, noted: ‘Although Brexit painted a temporary picture of uncertainty for tenants and landlords, our findings show that the market remains in good shape. We’re not seeing anything across supply or demand that is out of the ordinary, and while demand is at high levels, this is being matched with a decent volume of properties on the rental market.’[1]

‘What’s good is that more tenants are managing to successfully negotiate rent reductions, and that agents and landlords seem to be responding well to this. The rising cost of renting, especially in major cities such as London, is an ongoing issue in both the buying and lettings market so it’s promising to see small steps towards better affordability for renters,’ Cox added.[1]

[1] http://www.propertyreporter.co.uk/landlords/rental-demand-remains-high-according-to-arla.html