YOUR SNAPSHOT OF THE LETTINGS AND PROPERTY MARKET FOR ALL OF AUGUST, FOCUSSED ON LONDON AND THE REST OF THE UK!
- Data from Goodlord’s Rental Index shows that rents in England have increased to a high of 19% in the month of July. This is the highest recorded increase, the previous record was September 2022 with an increase of 9.6%. The reason for the increase is a surge in student lets, rising interest rates and a lack of available stock. The average cost for a property in England is £1,367, Greater London has an average rent of £1,986.
- Government figures on Capital Gains Tax shows an exodus of Landlord’s leaving the buy-to-let market. It is suggested Landlord’s are exiting the market due to increasing mortgage rates, PRS reforms and changes to EPC requirements.
- The Bank of England has risen interest rates again to 5.25% and warned the average increase in payments on buy-to-let mortgages in 2 years will be around £275.
- Figures from HomeLet’s rental index mirrors that of Goodlord’s which were released last week. The figures show an annual rent increase in every region of the UK, with HomeLet’s figures showing the average cost of a rented property in London being £2,109 pcm.
- Fines for Landlords who do not complete adequate Right to Rent checks on their tenants will be increasing from £1,000 per occupier to £10,000 per occupier.
- A report by Savills and the London School of Economics has revealed that there has been a 41% decline in stock available on the market over the past 3 years and asking rents have increased by 20% since March 2020.
- Foxtons’ Letting Market Index latest figures show weekly rents have increase 12% compared to last July, with central London’s average weekly rent at almost £680 and tenant demand up 13%.
- Record numbers of students are a reason behind the higher demand in the lettings market. There are 24.5% less rental properties available than there were in Q2 2017, whilst there’s an increase of 6.3% of students.
- New guidance on terms for lettings listings has been issued by Trading Standards, they can be found here: https://thenegotiator.co.uk/wp-content/uploads/2023/08/NTSELAT-Guidance-on-Property-Listing-Terms-Sales-Lettings.pdf.
- Landlords downsizing their portfolio is at an all time high. NRLA Research shows that one third of Landlords plan to cut the amount of properties they let over the next year, 12 of Landlords sols a property in Q2 this year, with only 5% purchasing properties.
- Data from Chestertons shows 39% more properties on the market to rent in London in July compared to last year, with a 5% decrease in tenant demand, suggesting that the market may be improving.
- Rents continue to rise in every region in the UK. Data from Home shows the average rent to have risen annually by 11.9%, with some areas of London, Bexley and Hillingdon rising between 30-40%.