The rental market is still sizzling! Even though rent increases are slowing down, demand is still sky-high, meaning properties are being snapped up quicker than ever.
According to Nicky Stevenson, managing director of Fine & Country, the average time it takes to find a renter is now just 12 days! That means over half of all properties are being rented out in less than two weeks.
One-bedroom flats are the hottest commodity, with the average time on the market just ten days. And 43% of these flats are being rented out in less than a week!
This means less time waiting for rent and more income flowing in for landlords.
Demand Outstripping Supply
The reason for this frenzied rental market is simple: there are still far more people looking for homes to rent than there are properties available. And it’s only getting worse.
Rightmove data shows that letting agents are receiving 17 enquiries for every rental property. That’s more than double the eight enquiries per property seen back in 2019.
Rents Still Climbing
While rent increases aren’t as dramatic as they were last year, they are still going up. The average rent in July hit £1,308, a 0.7% increase from June. That might not sound like much, but it means you’re still seeing a healthy return on your investment.
And outside of London, things are even hotter. Rents outside the capital rose 7.3% compared to July 2023.
Prime Market Booming
For those catering to the more luxurious end of the market, the news is even better. The average prime rental property is now going for £4,097, a 5.2% increase year-on-year. This growth is particularly strong in Wales and the North West, with rents in those regions up 8.4% compared to last year.
Key Takeaways for Landlords
- The rental market remains extremely competitive, with high demand and low supply.
- Properties are being rented quickly, with some being snapped up in less than a week.
- Rents are still rising, although at a slower pace than last year.
- The prime rental market is particularly strong, with rents increasing significantly.