The changing face of the local lettings market

Lisa Ward of SageWard Lettings explains why rental prices are going up again at the moment

The rental market seems to be constantly changing.

Since the start of this year, we have seen rental prices being pushed up, mainly due to landlords’ mortgage rates increasing to the extent that many of them would now be making a loss if their rents were not increased. We are also seeing many landlords needing to sell due to the general financial climate, with others being pushed out of the rental market due to the changes in interest rates.

In spite of this though, the rental market is still very buoyant with demand for properties still high even with the increased prices. This is probably because many people who were renting have put their plans to get onto the property ladder on hold for now until all settles.

Rental prices are expected to continue to rise as a result of this increased demand.

The key issue that has led to this, and one that saw rents rise throughout 2022, according to Zoopla, is supply and demand. Zoopla reported: “Supply and demand are really out of kilter at the moment. On the supply side, the average London estate agent would typically have had 17 to 20 properties for rent on their books. That’s down to 10 or less than 10 at the moment.

“The rent shifts also link back to the coronavirus pandemic, and the sudden drop in demand for rental flats that occurred when London went into lockdown and people could not travel or move there. This caused rents to fall by as much as 10-15%.”

Now that rents are rising again, our local area has received a knock-on effect from the London market and is seeing similar results with the soaring rental figures. However, we are hoping this will level out soon as the natural cycle of the rental market returns to make life more affordable for both tenants and landlords.