0:02 AM, 18th January 2023, About 9 months ago
The demand for rental property is still outpacing supply and rent growth is still rising – so the sector starts 2023 very much like it ended 2022, one property expert says.
Nicky Stevenson, the managing director of Fine & Country points out that the shortage of supply is what will underpin rent rises in 2023.
She explains: “Annual rental price growth across England and Wales is currently 9% – apartment price growth is outpacing that of houses, at 11% versus 8.2% respectively.
“High levels of annual price growth in the prime markets of England and Wales are driven by activity in the capital.”
With the exception of the South East, at £3,792 the threshold for a premium market rent in London is more than double that of any other region.
Ms Stevenson says: “During 2022, 90% of all new rentals of £3,500 per month or more have been in the capital, of which 65% were apartments.
“Across the remainder of England and Wales, 94% of such rentals were houses.”
Looking forward, Ms Stevenson says the rental market will remain busy with moderate rent price growth.
She adds: “With higher mortgage costs set to impact profit margins, UK Finance predicts that £13 billion will be lent to buy-to-let landlords for new purchases over the course of 2023 and £30 billion to landlords looking to remortgage.
“Both are significantly lower than in 2021 and more in line with pre-pandemic levels.”
Ms Stevenson continued: “Taxation and legislative change is once again on the Government’s agenda, with changes to Capital Gains Tax to come into effect in April.
“The Renters’ Reform Bill is set to be introduced by the end of this Parliamentary session in May 2023, although it will take longer for the Bill to become law.”
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