0:01 AM, 14th February 2023, About 10 months ago
High price rises in rental sector to continue in 2023 but signs show it may soon slow down, predicts agency chief.
Figures point to a loosening of supply constraints that have been driving record rental increases.
Rightmove reports the number of available homes to rent in the final quarter of 2022 was up 13% with the number of new properties to let up 5% year-on-year.
Nicky Stevenson, managing director of Fine and Country UK, says that according to the Census 2021 more than five million households in England and Wales now live in the PRS.
She said: “The number of households living in the sector has risen 29 per cent since 2011, with 89 per cent renting from a private landlord or letting agency. In London there are now more than one million households in the sector, compared to 1.5m owner occupiers.
“All regions in England and Wales have seen an increase in the number of households in the private rented sector since 2011, with the greatest increases observed in the East of England, East Midlands, and West Midlands.”
The average prime market rent is now a massive £3,718 and annual price growth of 16.7% has moderated slightly from its peak last summer.
She says that financial concerns are a major factor across the market and a large portion of agents confirm that more than half of renters continue to choose to renew their lease as opposed to moving.