Property Industry Eye’s Post

🍂🏡🍂 Our Zoopla (part of Houseful) Rental Market Report for September is out now. The story this quarter: We have annual rental inflation of 5.4% for new lets across the UK, the lowest for almost 3 years. But a continued supply/demand imbalance is drawing out the slowdown in rents compared to consumer prices and earnings. Slower rental inflation is especially concentrated around larger cities due to many renters hitting an affordability ceiling. This is pushing them to more affordable adjacent markets in towns and rural areas where annual rental inflation remains high (between 6.8% to 7.4%). Potential tax changes from the government run the risk of encouraging more landlords to sell up as they struggle to make the numbers work, which will exacerbate the supply issue further. This means that the key factor slowing further rental inflation will be affordability constraints. You can read the full report here: https://lnkd.in/eMvS_AGy Richard Donnell | Izabella Lubowiecka | Hometrack (part of Houseful)

The latest rental market report from Zoopla (part of Houseful) shows rental inflation slowing. Is this good news for renters? Not really. Renters have been hit by explosive inflation over the last year or so and in some areas of London, rents have increased by more than 30%. That's a much larger proportion of net incomes that now have to be spent on rent. The private rental sector we think is finished (not a bad thing). Stamp duty relief and mortgage interest tax relief have gone, so the investment proposition for part-time landlords is less attractive, especially when you factor property management and tenant liaison into the mix. Institutional investment is increasing though new investment models are desperately needed to create much needed housing, at scale. Savills research suggests that 800,000 to a million additional rental homes will be needed by 2031 to meet demand. We are nowhere near this.

📊 Zoopla Rental Market Report June 2024 Summary Zoopla (part of Houseful) 's latest report reveals key trends in the UK rental market. 🏡 Average rents for new lets have risen to £1,226, reflecting a 6.6% annual increase, though the growth rate is slowing. 🏡 London shows the lowest rent increase at 3.7%. 🏡 Despite a slight rise in available rental homes, competition remains fierce with 15 households per property chasing every rental home, highlighting the ongoing demand-supply imbalance. 🏡 The strong rental demand continues, driven by a robust labour market and challenges for first-time buyers. 🏡 Lower-income households are particularly affected, as rising rents and intense competition make securing affordable housing increasingly difficult. We were interested in this report as it highlights the increasing difficulty for lower income households to secure affordable housing, making financial literacy and budgeting skills more important than ever. Read the full report via the link. #RealEstate #UKHousing #RentalMarket #PropertyNews

🏡 Rents Soar by £270 Since the Pandemic: What’s Next for Renters? New figures from Zoopla reveal that the average monthly rent for newly let properties has climbed by £270 since the pandemic, now reaching a staggering £1,270 per month. While demand has begun to cool slightly, renters in the lowest-priced areas are still facing the sharpest increases. Students and low-income households are being hit hardest, with soaring costs leaving little room for essential spending. The rental market remains under pressure, with demand nearly a third higher than before the pandemic and landlords offering fewer properties as they plan to sell off their portfolios. As supply continues to lag, rents are forecast to rise by another 4% next year, piling further strain on tenants already battling the cost-of-living crisis. For renters trapped by rising costs, HomeNow’s rent-to-buy scheme offers a smarter solution. Instead of paying increasingly unaffordable rent with no return, you can start building equity in your future home while you rent. This gives you the stability of working towards homeownership without needing a large deposit upfront—putting control back in your hands in an unpredictable market. Read the full article here: https://lnkd.in/g_-NMG9D #HomeNow #CostOfLiving #RentToBuy #AffordableHousing #UKHousing

ZOOPLA UK Rental Market Report – March 2024 Executive summary • UK rental inflation slows to +7.8%, a 2-year low • Rental demand down 20% year-on-year as one-off pandemic factors ease and the labour market cools • A fifth more homes available for rent than a year ago but current supply still below pre-pandemic average • Rental inflation slows rapidly in London to 5.3% as supply/demand imbalance narrows and affordability pressures hit pace of rent rises • Scotland remains area with fastest annual rental growth at 11.6% • Over half of private rented homes are in £1,000+ per month markets • Rental affordability at decade high and unlikely to improve quickly • Expansion in rental supply is the main route to better affordability (Watch/Listen) https://lnkd.in/e-fZYPWZ #fifeproperty #fifeestateagents #fifelandlords #rentalreport #rentaldemanddown #rentalsupplyremainslow

🏠 While rental inflation is starting to slow, towns and rural areas still see rents rising. Check out the latest Zoopla (part of Houseful) Rental Market Report for more insights: https://bit.ly/4eb2dCI #ukeconomy #ukhousingmarket #houseprices #costofliving

An average of 21 tenants are vying for each available property as the supply of rental homes continues to dwindle. According to Zoopla, the availability of rental homes has dropped by 24% compared to pre-pandemic levels, largely due to landlords being hesitant to enter or expand within the market.   Do we need to do more to incentivise landlords?

Monthly rent soars by £270 since pandemic, says Zoopla Renting a newly let property is on average £270 per month more expensive than at the end of the coronavirus pandemic, according to figures from Zoopla. Rent began to soar in 2021 because of high demand from tenants after lockdowns were lifted and limited numbers of available properties. The average cost of renting is now £1,270 a month, or £15,240 a year, Zoopla said. However, the rate at which rents are rising is now the slowest for three years, the property portal has said, as potential tenants face limits on what they can afford. But average earnings in the past three years have not kept pace with the steep rise in rents. Renters have faced a "red-hot" market in recent years, with a host of prospective tenants chasing each available property, and rents surging on the back of the high demand. Demand is nearly a third higher than before the pandemic. Signs of cooling market But the property portal - which covers more than 80% of the rental market - said there were signs of this market cooling. However, those with the least to spend, in the cheapest areas, may now be facing the sharpest rent rises. "With more renters than there are homes to rent, people are seeking out the best value for money," said Richard Donnell, executive director of research at Zoopla. A3 are continuing to negotiate with letting agents and landlords in every individual tenancy to ensure that rents are kept at a resonable level. For more economical rental options in the shorter term A3 has developed an internal 'AirBnb-type' Property Portal - Accommodation Connect. For details and availability of short-term rentals across the UK contact one of the team at info@a3-online.co.uk or call 01702 204166. https://lnkd.in/g_-NMG9D

Zoopla (part of Houseful) have this month shared their Rental Market Update 2024 Report 🏠 Overall, there are no dramatic surprises. The annual rent increase rate has dropped slightly, but competition for rentals remains extremely high, around double the pre-pandemic average. Local data in Essex shows that the average rent achieved for homes let in the region is £1,271 per month, slightly higher than the UK average (including London) which is £1,226 (as of April 2024). This represents and 8% increase in Essex on the previous 12 month period. If you are interested in investing in the #Essex #property market then please get in touch with me, or visit our website: https://lnkd.in/eFEatgF6 You can take a look at the #Zoopla Rental Market Report here: https://lnkd.in/e63afPwA

🔮 Zoopla’s Prediction for the 2025 Lettings Market 📊 Zoopla’s outlook for the 2025 rental market highlights some positive shifts, with rental supply slowly improving, though challenges remain. Key Takeaways: 1️⃣ Rental homes available are up 12% compared to last year but remain below pre-pandemic levels in most regions 🏘️. 2️⃣ Private landlords are selling fewer properties but conditions for reinvestment are still challenging 💰 3️⃣ Build-to-rent investment is growing but has slowed due to regulation and borrowing costs ⚖️ 4️⃣ Average rents are expected to rise by 4%, reaching £15,850 annually 📈 5️⃣ Larger cities and London will see slower rent growth due to affordability pressures 🌆 While supply and demand remain imbalanced, the market is stabilising, with opportunities for improvement as conditions evolve. Lower borrowing costs and higher yields could further boost landlord investment 🏘️.