Rental market shows promise amidst looming legislative changes

2024 is set to be a challenging year for the private rented sector, according to new research.

Propertymark says proposed legislative changes will greatly impact the rental sector.

However, there is a glimmer of hope as an uptick in the number of properties available to rent is increasing easing the supply and demand burden.

A plethora of proposed legislative changes

According to Propertymark, there has been a 29% increase in the number of properties available to rent.

The number of prospective tenants registering per member branch has increased from 63 in December 2023 to 97 in January 2024.

Almost half of agents point to rental charges levelling out. However, there has been an increase in the number reporting rising rents over the previous month (39% in January 2024 vs 35% in December 2023).

There has also been a decrease in the number reporting rent falls (11% vs 15%).

Nathan Emerson, chief executive officer of Propertymark, warns that despite positives the private rented sector will face challenges this year.

He said: “The lettings sector has also rebounded after the festive break, with a positive increase in the number of prospective tenants registered and the number of properties available to rent.

“However, this will be a challenging year for the UK’s private rented sectors due to a plethora of proposed legislative changes. We will monitor the impact of these changes as they arise.

“Although 2024 has started well, it remains to be seen how long this initial uptick in activity will be sustained.”

UK house prices increased marginally

In the residential sales sector, UK house prices increased marginally in December 2023. This is largely due to increases in England and Wales. Prices in Scotland fell back slightly in comparison to the previous month.

The average number of new prospective buyers registered per branch increased by 120% in January following a considerable fall in December.

January also saw an 80% increase in new properties coming onto the market.

However, Propertymark says whilst the gap is closing, there remains a mismatch between valuations and market expectations, with most members noting that properties are still selling at below asking price.

Share This Article