Record rent rises and royal celebrations mark the start of June. The lettings market shows little sign of a slowdown in activity.
Across the UK, rents are rising at their fastest pace since the Global Financial Crisis in 2008 and an increasing number of renters are choosing to stay in situ.
This avoids entering the current market frenzy, and lease renewals often benefit from lower rent increases. The average tenancy length is now 75 weeks, up from an average duration of a year back in 2017 (Zoopla).
A Royal Connection
When the Queen ascended the throne back in 1952, nearly two-thirds of households across England and Wales were in the private rented sector. Over the course of the last 70 years, while the number of households has nearly doubled, the proportion in the private rented sector has fallen to one in five.
In a nod to the Jubilee, Dataloft analysis suggest there are over 4,500 roads across England and Wales with ‘Queen” in their street name. Over 970 road names include ‘Jubilee’, 940 have ‘Elizabeth’, 800 have ‘Royal’ and nearly 670 include ‘Coronation’ (Dataloft, Ordnance Survey). How many include private rented households is unknown, but plenty will have a royal connection.
Zoopla data shows that, on average, tenants are staying put in their current properties for longer, which may be partly due to not wanting to move into a new rental property where a larger rent increase will be applied. There is a question around rising interest rates and whether renters will feel the impact of rising mortgage rates for landlords. Most landlords will have fixed-rate mortgage deals, so this will not be happening across the whole market at once, but in these market conditions, local demand will determine whether landlords can pass on this increased cost, especially as living costs are rising.
- UK average monthly rent is £995
- The average time to let a property in the UK is 17 days.
Our lettings department have been extremely busy with new properties being let within 7 days. We have an extensive database of applicants looking for a rental property in the Chorley area, giving landlords lots of applicants to choose from. Our lettings department have won the British Property Award for 2021-2022 as well as The Best Estate Agent Award for service. If you would like more information about becoming a landlord or would like to book a valuation, do give us a call on 01257 451 673.