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0:02 AM, 13th December 2023, About 5 months ago 1
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The UK’s private rental sector (PRS) is showing signs of slowing down as the festive season approaches, but one expert is predicting a strong recovery in 2024.
Nicky Stevenson, the managing director of Fine & Country, says the market is under pressure and expects a resurgence in rental growth next year, supported by positive indicators and trends.
She explains: “However, the market remains under pressure and a strong resurgence in rental growth is expected as we move into 2024, with positive indicators and trends supporting this forecast.”
Ms Stevenson points to a HomeLet survey that shows rents have risen by 8.9% year on year but have dropped by -0.3% month on month in November, bringing the average rent across the UK to £1,279.
This follows a busy summer season and typical seasonal patterns, but could also suggest the start of a slowdown, she says.
Ms Stevenson said: “In the prime market, where demand remains high, the average rent has increased by 5.8% year on year, reaching £3,854 per month.
“Notably, annual rental growth is positive across all regions, with the South West leading the way with a significant rise of 16.8%.”
She also reveals what is expected for the new year and said: “Looking ahead, industry forecasts suggest a continued rise in rents throughout 2024, supported by the ongoing supply-demand dynamics.
“However, experts anticipate that the market may reach an ‘affordability ceiling’ in 2025, prompting a more balanced phase.”
The Property Academy Renter Survey, which offers insights into trends and preferences in the market, shows that more than a quarter of renters are choosing to rent as a lifestyle choice rather than out of necessity.
Ms Stevenson said: “Approximately, 37% of respondents plan to continue renting for two years or more, citing benefits such as flexibility, a higher standard of living, and access to amenities, as well as the ability to work remotely.”
She also notes that tenant preferences are becoming clearer as winter sets in.
She said: “The survey shows that 55% of renters would prefer utility bills to be included in their rent.
“Additionally, 44% of respondents stated they would be more inclined to rent a property if utility bills were included, according to Zero Deposit.
“However, Zoopla reports that only 12% of properties currently include bills within the asking rent, highlighting a potential area for consideration by landlords and letting agents.”
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Rob Crawford
17:14 PM, 13th December 2023, About 5 months ago
Dip or no dip, from my perspective in the Bristol/ Bath areas, demand continues to outstrip supply. With landlords leaving the market this ratio is destined to increase in 2024, demand increasing and supply reducing further. Also, I note tenants are not moving as frequently. Great for landlords, not so great for agents who depend on additional incomes accrued from finding and placing new tenants.