Landlord Market Update – April
As of April 2023, the property market remains robust, with rental prices continuing to rise steadily. Occupancy rates are high, and demand for rental properties remains strong. However, the supply of rental properties has increased slightly, resulting in healthier competition for landlords.
The increase in supply can be attributed to the property market’s return to pre-covid levels, with property prices becoming more realistic, prompting more landlords to re-enter the buy-to-let market. Additionally, the stable economic climate has no significant changes likely to affect the property market in the near future.
According to Rightmove, the national average asking rents outside of London have reached a new record of £1,190 per calendar month. Although the pace of rent growth has slowed and eased for three quarters in a row, the average asking rents for new tenants have risen for 13 consecutive quarters. It’s important to note that the average asking rent in London has surpassed £2,500 for the first time to reach a new record.
The number of available properties to rent is currently 6% higher than last year, and supply has improved by 8% compared with the same period last year. However, the number of available properties to rent is still 46% below 2019’s level. The gap between supply and demand has narrowed slightly compared to last year but is still near record levels, with the number of tenants enquiring greatly outweighing the homes available to rent. Competition between tenants has eased by 2% compared with last year, but it is still more than double (+173%) the level it was back in 2019. Tenant demand is 4% higher than this time last year, and 48% higher than 2019.
It’s important for landlords to keep up-to-date with various legislation and regulation changes that might affect their investments. In April 2023, there have been some notable changes that landlords should be aware of. For instance, new safety regulations require landlords to provide safe and habitable living conditions for their tenants, while tax laws have also been revised to impact landlords’ profits. It’s crucial for landlords to stay current with these changes and ensure they are compliant. At Michael Jones, our team works hard to keep our managed landlords up-to-date with any legislation changes, taking the stress out of letting and looking after our landlords and tenants alike.
The rental market in West Sussex remains competitive, with tenant demand outweighing the supply of rental properties. It’s vital to stay up-to-date with market trends to make informed decisions about rental properties. Our team is on hand to help, and we encourage landlords to get in touch with any questions.
Content accurate at time of publishing.