Surprise 12% drop in asking rents as market cools

And now after the budget here we go again.

Is this not an annual occurrence for rental growth to slow from October all the way throught the Christmas and the New year period?

Really? If I had 10 vacant properties I could fill them without even advertising. I have that many wanting a place. This is at prices I’ve never achieved before. I am concentrated in a single area though so can’t speak for the rest of the country.

There are 40 x 3-bed rental properties within 10 miles of my target area, currently advertised on a well known property website.

Only one is available at LHA level. Even a small 3-bed in a poor quality terrace, known for its drugs issues, commands a rent 20% higher than LHA.

Reply to the comment left by Cider Drinker at 01/11/2024 – 15:48
Totally agree.

All my properties are ‘in the affordable end’ of the market that you speak of in Nottinghamshire and Yorkshire areas. The lha doesn’t even touch the sides of market rent. Just rented a small two bed terrace terrace in one area- £800pcm lha £548. Agent took 40 calls in first few days and let agreed within the week after multiple takers fighting for it.

In another area of mine 3 bed ex council houses letting quickly at between £1100 and £1200. Lha £750.

I’m not seeing the drops spoken of and the lha rate matters not as the properties are only going to working tenants anyway. LHA’ers priced out a long time ago.

I’ve never charged anything like these rents before, I’ve always been under market value for the last 30 years, but now have no choice with government both past and present loading my, (sorry I mean tenants), costs.

I advertised a 1 bed flat and a 2 bed flat in September this year. I increased rent on both of them but seemed to achieve proportionally more on the 1 bed. Surprisingly my 1 bed was the only 1 bed advertised on Rightmove although another 1 bed property later joined the listings. However my 2 bed was competing with 86 other 2 beds. Although I had the interest I felt I wasn’t getting the type of tenant I wanted (solid job, high salary) so I dropped the price significantly for a tenant who I deemed to be less risk. However in our area the supply of rental property’s is changing. I rent out furnished property’s because my property’s appeal to younger people who want to be in a good location a step away from town and in the past it was rare to see other furnished property’s. Now the majority of flats seem to be furnished and high end because they are ex airbnb’s. Thankfully because of the high investment in them to appeal to the holiday market the owners price them high. I do get the impression that younger generation wants high luxury quality let’s and will pay for it therefore they are tending towards the luxury end of the market.

Reply to the comment left by Slooky at 02/11/2024 – 08:58
I agree. Younger people nowadays would prefer to pay the higher rent, have a nice looking place, have their leased car outside, and their not bother with starting families … they’re all about going on holiday and taking nice pictures for instagram…

Almost certainly an artifact of using averages. There was a big chunk of lower value properties being sold off which caused a huge jump in the average; this may have slowed but not around my part of the south east.

Reply to the comment left by Lisa008 at 03/11/2024 – 12:37Yes exactly on point ref the lease cars. Each of my tenants earn way more than I do from renting out my flats. 40K + cars outside.

Doesn’t this happen every October? August and September see the start of most Student tenancies, an annual event of a disproportionately high number of HMOs starting which are let on a whole house basis rather than an individual room basis. Would be interesting to know if this known annual anomaly has been factored in to the figures?!

Just seen a comment I posted a year ago where Goodlord reported the exact same thing for 2023!!!