Tag: under supply

PODCAST: https://podcasters.spotify.com/pod/show/fife-properties/episodes/ZOOPLA-UK-RENTAL-MARKET-REPORT–March-2023-e21d6s0

Executive summary

• Rental inflation has slowed to 11.1%, from a high of 12.3% in mid-2022
• A strong labour market and record immigration drove demand in 2022. Private rented housing supply has grown just 1% since 2016
• Higher mortgage rates have further weakened the economics of investing for landlords, impacting new investment in rental supply
• Landlords ‘searching for yield’ to offset rising costs will push some to let into different sectors of the private rental market
• The growth in overall rental supply is set to remain limited in 2023. Demand is expected to remain above average but lower than 2022
• Rental inflation for new lets will slow to 4-5% by the year end. The slowdown could be rapid in inner London and other city centres.

PODCAST: https://anchor.fm/fife-properties/episodes/FP-TV—ZOOPLA-UK-RENTAL-REPORT-Q3-2022-e1nsn1a

• Rental growth is close to peaking at 12.3% per annum. Average rents have risen by £115 per month over the last year to £1,051
• London’s rental growth, at 17.8%, is unsustainable and reflects a rebound in rents after a double-digit decline over the pandemic
• Rising rents are adding to cost-of-living pressures, pushing renters to look for smaller homes –demand for 2-bed flats has increased
• The shift to smaller homes is being re-enforced by rising energy costs, with the gas needed to heat a purpose-built flat 40% lower than that for a 3-bed house
• The chronic undersupply of rental homes shows no sign of changing, which means that rents will continue to post above average growth rates into 2023 despite cost-of-living headwinds