With significantly more rental properties to choose from, it’s a tenant’s market in the Home Counties, as reflected by a drop in rent prices so far this year, reports Knight Frank.
It’s a Tenant’s Market in the Home Counties, Reports Knight Frank
Despite a 23% annual rise in the volume of new tenancies agreed in the first three months of the year, prime rental values dropped by 2.3% across the Home Counties, following a 1.8% decline in the previous quarter.
The estate agent was instructed to let 33% more properties in the first quarter (Q1) of 2017 compared with the previous year, while the number of market appraisals – a good indicator of future stock levels – rose by 39% year-on-year, placing downward pressure on rent prices in the Home Counties.
The volume of new prospective tenants increased by 15% over the year, with demand highest in the sub-£2,000 per month price bracket.
Around 60% of new tenants in Q1 were from the UK, followed by those from North America, the data shows.
Corporate enquiries from individuals relocating to the Home Counties for work were fairly robust over the quarter, up by 17% on the same period last year. Indications suggest that interest from corporate tenants will rise further over the summer months, ahead of the start of new school terms.
A Partner at Knight Frank’s Home Counties lettings team, Jemma Scott, says: “The figures very much reflect the feedback that we have been getting and the general sentiment within the market.
“After a challenging summer last year, we saw a surge in rental deal volumes at the beginning of 2017, which, coupled with the heightened level of enquiries from prospective tenants, means we head into the traditionally busy spring and summer market with great optimism.”
Do you let properties in the Home Counties? If so, have you seen conditions shift towards being a tenant’s market?