Lettings Market Insights 2018/2019
Welcome to market insights. When looking back on the 2018 market you can see a series of sub plots that have played out alongside the political uncertainty. These have included continuing readjustment in London with evidence this is spreading to the South, a more buoyant market as you go further north and a drop in buy to let activity leading to a lack of rental stock. Yet despite all of this, sales activity and prices at a national level are holding pretty steady compared to 2017. There are some slower markets in the south where buyer affordability has been seriously stretched, leading to a very price sensitive market. As you move further afield the landscape is comparatively stronger with significant uplifts in activity in parts of Scotland and Wales such as Edinburgh and Newport. The annual rate of price increase remains subdued for a second consecutive year, a result of national asking prices now being over 30% higher than they were back in 2010. So what does 2019 look like for your business? Underlying demand is a positive, though choosier buyers will be looking for the right
property at the right price. The skills of estate and lettings agents will be greatly appreciated by sellers, buyers, landlords and tenants, to help them navigate through the maze of political uncertainty and whatever Brexit has in store for us. To find out the value of your home contact us on firstname.lastname@example.org or call us on 0800 688 9777 or visit our online valuation tool Please click here
source: Rightmove little blue book 2018/2019
Rental stock is shrinking A combination of fewer investors purchasing buy to let properties and higher demand from tenants has led to a drop in the number of available properties in the rental market. Nowhere is this felt more than in London, with available stock down over 21% year on year.
Since the additional stamp duty tax deadline in April 2016 and the large volume of rental stock that was added to the market as a result, the level of supply has slowly dried up. Regions outside London didn’t experience as significant a dip over the past year, but with available stock 10% down across Great Britain,
In London, rental asking prices decreased slightly from their peak in 2016 into 2017, but are now showing signs of bouncing back as demand is outstripping supply. The majority of the rest of Great Britain is experiencing rising rents as demand remains strong, most notably Scotland, which is experiencing a buoyant rental market. Demand for properties to rent is up 4.1% (second to London) and rents have seen an increase of 5.6%, the highest increase throughout GB.