The evolving landscape of the rental market

Over the recent years, the rental property market has witnessed a significant surge in demand, with supply struggling to keep pace. This imbalance between the number of available rental homes and the burgeoning pool of renters underscores the pressing need for an increase in long-term rental properties.

According to the latest figures from the Office for National Statistics (ONS)[1], the UK saw an average private rent increase of 9.0% in the year leading up to February 2024, marking a notable rise from the preceding year.

REGIONAL INSIGHTS

In England, the scenario is particularly pronounced, with the average private rent reaching £1,276 in February 2024, which represents an 8.8% increase from the previous year. This is the most substantial annual growth observed since the commencement of this data series in 2006, evidencing a slight uptick from an 8.3% increase noted in January 2024.

WELSH RENTAL MARKET

Turning our attention to Wales, the average private rent was recorded at £723 in February 2024, climbing by 9.0% from the year before. Despite this growth, there has been a slight deceleration from the 9.1% rise reported in the year to January 2024. This marks the third consecutive month of slowed annual inflation, a dip from the record-high annual increase of 9.8% observed in November 2023.

SCOTLAND’S RENTAL DYNAMICS

Scotland’s rental market tells a similar tale, with average rents ascending to £944 in February 2024, up by 10.9% compared to the previous year. Although this reflects a minor decrease from an 11.2% annual increase in January 2024, it remains a significant figure, especially when considering the gradual slowing of Scotland’s annual inflation rate since the record-high annual rise of 11.8% in August 2023.

The pattern of rising annual inflation observed between late 2021 and mid-2023, followed by a slight moderation, likely mirrors recent shifts in annual inflation rates for new lettings, which are not subject to price caps. It’s important to note that due to data collection constraints, the statistics for Scotland primarily pertain to advertised new lets, exempt from the country’s in-tenancy price-increase cap under the Cost of Living (Tenant Protection) Bill.

NORTHERN IRELAND’S RENTAL MARKET

Focusing on Northern Ireland, where data is available up until December 2023, we observed a 9.3% increase in average private rent over the 12 months to December 2023. Although this represents a slight decrease from the 9.5% rise in November 2023, it is considerably lower than the record-high annual increase of 10.0% in March 2023.

UNPARALLELED FREEDOM AND FLEXIBILITY

In the current property market landscape, renting can be a pragmatic choice for many individuals. Beyond the appeal of lower upfront costs, renting offers tenants unparalleled freedom and flexibility, enabling them to select homes that perfectly align with their lifestyle preferences.

Don’t forget, our professional friendly advisors are on hand to support you and can help you explore all of your options.

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