What is the outlook for the lettings market in the first 6 months of 2023?
We saw increases in rent across the board last year as stock levels remained low and tenant enquiries rose. What will 2023 bring?
What is the outlook for the lettings market in the first 6 months of 2023?
2022 saw record levels of rent being achieved. Low levels of available property coupled with an increase in tenant enquires as people returned to offices and studying after the pandemic meant demand way exceeded supply.
Throughout the summer months it became normal for us to receive in excess of 30 enquiries per property within the first hour and meant we were frequently forced to remove listings after as little at 15 minutes in some cases! Competing tenants would often offer over the asking rent just to try and ensure they secured a property.
It can partly be traced back to the initial lockdowns of 2020, when many tenants left London and the surrounding areas as offices, shops and universities shut down. In the summer of 2020 we had lots of empty properties and not many people to show them to!
As a result landlords had to take drops in rent to secure tenants, fast forward 2 years and the tables have completely flipped! It meant however that those people who had secured low rents, have since renewed tenancies in summer 2021 and summer 2022, and although would have likely agreed increases would still be paying below open market rents. By renewing their tenancies it means those particular properties do not come back to market.
The hope for tenants this summer is that after renewing tenancies twice, those properties may become available as tenants finish Uni courses or secure new jobs etc. That may lead to an increase in stock levels, which will present more opportunities for tenants.
Supply and demand is still the biggest driver in rental prices although many landlords will also be considering mortgage rates. The steep increases over the past months have seen some landlords' repayments treble and as such may be forced to increase rents further just to cover their expenses.
Currently tenant demand remains high and as such strong rents continue to be achieved, if you have a property that you're looking to let out then now is the perfect time! You can book a free valuation here > https://www.lloydsres.com/valuation
If you're looking for a property to rent then you can register for 'Heads Up' alerts, which will notify you of suitable properties before they hit the main websites. Click the link here > https://lloydsresidential.web.lifesycle.co.uk/properties/register