In the Lettings industry, it is vital to keep up-to-date with the latest trends in pricing, supply and demand. By analysing this information, we can adjust the way in which we approach rentals including pricing, marketing and landlord services.
The very latest in research has been released via Rightmove following analysis of over 300,000 properties that were listed on their platform in the first quarter of 2022. Read on to see what was found:
Average asking rents have risen to £982 pcm over the last year, to take annual growth in asking rents outside of London above 10% for the first time (10.8%). When we look more locally at the North West, the average rent is now at £937pcm which is a 12.8% increase compared to last year. In Q1 at JDG, our average rent for the properties we let was £776.72pcm which is a 17.1% increase on last year.
The imbalance between high tenant demand and the low numbers of properties available continues to drive growth in asking rents. At JDG, in Q1 we let 29 properties but for those 29 properties we have 1,151 applications.
Across Great Britain, tenant demand is up by 6% and the number of available rental properties is 50% lower than this time a year ago.
The result of this ongoing mismatch between tenant demand and the properties available to rent means that tenants looking for a new place to move to are being faced with the most competitive rental market that we’ve ever recorded.
There are more than triple the amount of tenants enquiring as there are rental properties available, meaning a high likelihood of landlords being able to choose between multiple suitable tenants.
Despite the mismatch of tenants enquiring and rental properties available, there are some positive signs of more property choice. The number of new rental properties coming onto the market rose by 5% in March compared to January, and 16% compared to the shorter month of February.
As asking rents increase across Great Britain, with nine regions recording a more than 10% rise in asking rents compared to last year, demand is growing for areas outside of price hotspots that offer the opportunity of lower rents, while still being in commuting distance of the major cities for work or leisure.
Manchester and Liverpool are two of this quarter’s top five rental price hotspots, with asking rents increasing by 19.3% and 17.1% respectively compared to this time last year.
With the massive demand and heightened prices, it is a great time to consider investing in a rental property. We are happy to offer no obligation advice on the best investments in and around Lancaster and Morecambe – just give our team a call on 01524 843322 or email josh@jdg.co.uk
