May Round-up!

YOUR SNAPSHOT OF THE LETTINGS AND PROPERTY MARKET FOR ALL OF MAY, FOCUSSED ON LONDON AND THE REST OF THE UK!

  • Research from Paragon Bank reveals almost 70% of Landlords have experienced higher tenant demand in the first quarter of 2021.
  • Data released by Homelet on the latest market figures shows that rents in the UK have increased by 1.3%.
  • According to the consumer body, Which?, it is estimated that 700,000 households missed either rent or mortgage payments in the UK. When it comes to rentals, it’s estimated 1 in 20 tenants missed a payment in the last month.
  • Knight Frank reports rents in prime central London have risen by 50% in the past 2 years, with prime outer London rising by 41%. This is believed to be due to the supply and demand issues faced in the capital, with 42% fewer listings available than in April 2021.
  • An announcement on the Renters Reform Bill was expected this week, however, due to rumored ‘procedural delays’, the bill has not yet been introduced to parliament.
  • the Bank of England has increased the base rate from 4.25% to 4.5%, the 12 increase in a row.
  • For the first time ever, the average rent outside of London has risen above £1,000 pcm. Research by Hamptons Lettings using data from the Countrywide Group, shows rents outside London have risen 7.8% over the last year. Rents for inner London also continued to grow, reaching over £3,000 pcm for the first time in March.
  • The Renters’ Reform Bill has finally been introduced to the House of Commons with the most noted changes to the rental sector being: abolition of Section 21’s, allowing pets in lets, an introduction of a Decent Homes Standard, blanket bans on refusal to let to tenants with children or in receipt of benefits, and ending of assured and assured shorthold tenancies, with tenancies now being more uniform and much like periodic tenancies.
  • Data from the Office of National Statistics (ONS) show rental prices increasing at their fastest-ever pace as tenant demand continues to grow despite the lack in supply. The ONS data shows London prices growing 5% in a year from April (the steepest increase in 11 years) and up 4.7% in England on average.
  • Propertymark reports the number of new tenants registering per branch rose in April, 24% higher than it was in April 2022, with the stock levels the same as they were in April last year.
  • Rightmove has analysed areas of tenant demand since the opening of the Elizabeth Line a year ago. Demand in Reading has increased 32% followed by Brentwood (26%) and Shenfield (25%). With less supply available in London, tenants are looking further afield, however, the knock-on effects of this can be seen. Average Rents in Reading have risen to £1,401pcm, up 10% over the past year.