Rental Market Update
Overview
In February, there were approximately 10 new prospective rental tenants registered for each available property, indicating a high demand for rental properties. Despite a slight decrease in the average number of new applicants per agency branch, the imbalance between supply and demand persists due to reduced stock levels.
Key Findings
- Rental arrears remained stable in February 2024.
- Tenant demand in the residential lettings sector has slightly decreased.
- Rents are fluctuating based on location and property type, with signs of stabilization.
Market Insights
The report, based on a monthly survey of Propertymark member agents across the UK, highlights the ongoing mismatch between demand and supply in the rental market. The value of new buy-to-let lending in the UK saw a significant decline in the fourth quarter of 2023, accompanied by a rise in average interest rates for buy-to-let loans.
Challenges for Landlords
Landlords are facing increasing costs, with a rise in arrears and repossessions in the buy-to-let sector. Despite these challenges, mortgage lenders are offering support and forbearance options to landlords struggling with payments.
Outlook
While the rental market faces uncertainties and financial pressures, rental demand remains strong, and landlords are demonstrating resilience in navigating these challenges.