2023 rental trends – the story so far
11 May 2023
The recent release of Rightmove’s Rental Trends Tracker for the first quarter of 2023 makes for a good read for those interested in the lettings market from would-be first-time landlords, seasoned buy-to-let investors and even us as experienced letting agents. Whilst their trend analysis covers the whole of the UK lettings market, their latest report matches our own findings in our part of Yorkshire. Here’s an overview of their findings.
- Average asking prices for new tenants (outside of London) rose to yet another new record of £1,190 per calendar month.
- This marks 13 consecutive 3-month periods where asking rents on new properties to let have risen, a run which stretches back to the end of 2019.
- However, the pace of asking rent growth has continued to slow.
- Supply remains very constrained in the rental market, however it is showing slow signs of improvement this year.
- The number of available properties is currently 6% higher than the near-record low levels of this time last year, whilst across the opening three months of this year, the number of available rental properties is up by 8%.
- However, supply is still historically very low, with the number of available rental properties now 46% below 2019’s level.
- The gap between supply and demand, and competition between tenants for the homes available, has improved slightly compared to last year however there remains a significant imbalance, with the number of tenants enquiring to move greatly outweighing the number of homes to rent.
- Competition between tenants has eased by 2% compared to last year, though it is still more than double (=173%) the level it was back in 2019.
- The gap between supply and demand is exacerbated by the number of tenants looking to move continuing to exceed even last year’s frenetic level.
- The number of tenants enquiring to move is now 4% higher than this time last year, and 48% higher than 2019.
- Terraced houses have the biggest gap between supply and demand, with more than 4 times as many tenants enquiring as there are properties of this type available to rent, whilst flats are currently finding a tenant the quickest.
Rightmove’s Director Tim Bannister says: “We have seen some early signs of improvement on squeezed supply levels this year, though with no significant influx of new properties becoming available to rent currently on the horizon, the mismatch is set to continue for some time. Many agents are having to manage a very high volume of tenant enquiries for every property that they let in the current market. Properties in popular areas within an affordable asking rent range of that local area are likely to be snapped up almost immediately, and on average homes are finding a tenant much more quickly than this time in 2019. Although there are some early signs that the gap between supply and demand is starting to narrow a little, it will still feel very competitive for tenants trying to secure a home.”
Agent’s View: The Yorkshire rental market remains very busy with multiple prospective tenants competing over a general shortage of property to rent in our areas. We’ve seen existing tenants staying put in their current home which has had a knock-on effect for the rest of the market and which has contributed to the shortage of rental stock. The shortage has also increased recently due to some landlords deciding to sell up due to higher mortgage costs. However for new or existing landlords to grow their portfolio, yields remain strong, with a mix of property types proving popular particularly in our areas - 3 bed semi-detached and terraces proving especially popular.
With more lettings legislation to navigate, if you’re letting property in Harrogate, Ripon, Wetherby and the surrounding areas, it’s more important than ever to ensure you’re in the hands of an experienced lettings team – read one of our latest lettings testimonials from a happy BC landlord:
“Donna at Beadnall Copley was a pleasure to deal with and very professional. BC found me a great tenant, quickly and completed all the refs and pre tenancy work well in advance of the move in date. Donna was extremely helpful and as a first time landlord helped me with everything I needed to have in place legally to keep me and my tenant safe.” Mr M
Call Beadnall Copley Lettings direct on 01423 505458.
Also if you’re looking for up-to-date lending products for your lettings portfolio or first-time lettings purchase, our team can also put you in touch with our recommended mortgage brokers for a financial health check - James Homer and Dan Porter are highly experienced whole of market brokers and work independently for Apex Mortgage & Protection Ltd, and will search the market for the best mortgage solution for your individual circumstances – ask us to introduce you.
Property pictured: Main Street, Colton, Nr Tadcaster – 3 bedroom semi-detached home with gardens and off-street parking – available to let through Beadnall Copley at £1,250 pcm – viewings taking place this week so call us if you want to book a slot.