Rental market remains steady with high demand
3 years ago
Cost of living crisis hits rental demand
10:25 AM, 5th January 2023, 3 years ago
7
Categories:
Tenant demand is starting to fall across England with some areas seeing demand falling by up to -29%, research reveals.
The findings from lettings and agent, Barrows and Forrester, show that renter demand in England is currently sitting at 33.9% – after a quarterly drop of -12% between Q3 and Q4 of 2022.
Bristol saw the biggest decline in demand at -28.9%, followed by Nottinghamshire (-21.5%), the City of London (-20%), West Yorkshire (-18.7%), and Greater Manchester (-18.5%).
‘Rental demand is down across all but four areas of England’
James Forrester, the managing director of Barrows and Forrester, said: “Rental demand is down across all but four areas of England and the rising cost of living and surging energy prices will be playing a significant part in this decline.
“Tenants are fully aware that landlords are seeing their own expenses rise, not least mortgage payments, and are passing these increasing costs to their tenants.
“As such, renters are choosing to stay put at the moment with tenancy agreements that were signed before the current economic crisis instead of exposing themselves to a market where prices are likely to get higher and higher.”
He adds: “As the cost-of-living crisis eases, whenever that might be, rental demand will certainly increase. But for now, tenants are staying put.”
Areas that saw tenant demand growth in the past quarter
The only areas that saw tenant demand growth in the past quarter include Durham where it grew by 12%.
Demand on the Isle of Wight has also increased by 3.5%, and there was a 1.9% boost for both Shropshire and Essex.
The rental demand hotspot in England currently is West Sussex where demand for rental properties sits at 56.1%.
This is followed by Bedfordshire (54.4%), Essex (54%), Bath & North East Somerset (51.5%), and Dorset (51.5%).
Meanwhile, demand is at its lowest in the West Midlands (19%), Leicestershire (20.8%), and West Yorkshire (21.3%).
Comments
Have Your Say
Every day, landlords who want to influence policy and share real-world experience add their voice here. Your perspective helps keep the debate balanced.
Not a member yet? Join In Seconds
Login with
or
Previous Article
Rental market remains steady with high demandNext Article
Bernie Wales: Why leasehold law is never boring
Member Since January 2020 - Comments: 102
11:19 AM, 5th January 2023, About 3 years ago
Now I am confused!
Compare and contrast this headline with another one also printed today on same website.
“Rental market remains steady with high demand”
Member Since October 2022 - Comments: 1
8:42 AM, 6th January 2023, About 3 years ago
Demand is down across most areas according to article, it would be interesting to compare this to the supply , for example if there was a demand of 100 and a supply of 10 there are is a ratio of 10./1 if demand drops to 75 headline could be demand drops 25 percent , but if supply drops to 5 properties ratio is 15/1 .making it harder for Tennant’s to secure a property . I feel.article should mention supply and demand to give a balanced assesment of situation and to place it all in context ..I have been a landlord for over thirty years and feel.the current affordable housing shortage is just getting worst .
Member Since April 2021 - Comments: 189
10:26 AM, 6th January 2023, About 3 years ago
What is the percentage of? Demand is 56% of what? what is the benchmark?
Member Since December 2022 - Comments: 4
10:45 AM, 7th January 2023, About 3 years ago
Its a bloated market, subsided by the benefits system to allow greedy landlords to milk the poor.
Like any market if you charge more than people csn pay you will break the market
Member Since June 2014 - Comments: 1563
10:50 AM, 7th January 2023, About 3 years ago
Reply to the comment left by Arthur Cotton at 07/01/2023 – 10:45Try finding a private rental for someone on benefits.
Or even better, put your money where your mouth is and provide accommodation for tenants on benefits.
Member Since February 2019 - Comments: 16
11:03 AM, 7th January 2023, About 3 years ago
If I buy a property for £140,000, the mortgage would be about £800 per month.
In Wrexham the local housing allowance is about £100 a week……Do the maths Arthur.
So much for gready landlords being subsidised by the state!……would you take a person on benefits on as a tenant if you invested that amount of money?
Member Since February 2021 - Comments: 6
9:05 AM, 8th January 2023, About 3 years ago
Yes ~I am afraid this article is pretty non informative as it really is just quoting figres with little meaning very poor