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Rental sector “massively underperforming” say analysts

A long-term shortage of stock means the rental sector is “massively underperforming” according to the property analytics service TwentyCi.

It says in its latest quarterly market snapshot that when comparing the lettings sector in Q1 2022 with Q1 2019 - the last ‘normal’ year pre-pandemic - the issues are clear.

New instructions are down by over 28 per cent compared to Q1 2019 outlining a lack of rental stock available.  The volume of lets agreed is also down by 17 per cent compared to Q1 2019. 


TwentyCi spokesman Colin Bradshaw says: “With a lack of stock in the residential owner-occupied sector one might expect a buoyant rental sector. However, to the contrary, we are seeing an extremely lacklustre level of activity. 

“With fewer rental properties coming to the market, one would expect an excess in demand to result in a higher level of lets occurring, but perversely this is not the case. 

"One might surmise that renters are staying put, with few alternative options available, the step to the owner-occupied sector extending and the pressure on household incomes encouraging people to stay put. 

“We are also undoubtedly seeing some effect from the shrinkage in the number of landlords due to the tax changes put in place in 2019.”


The analysis goes on to say that the average asking price across the UK is now £1,495 per month, an increase of 10 per cent from Q1 2019. 

“This may be considered surprising in a lacklustre sector, however, with interest rates rising and energy costs rocketing we would expect to see landlords passing on these increases through rent rises” says the market report, out today.

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    Tenants choosing to stay longer.

    Landlords not passing on increasing costs.

    Surely these are not evidence of underperforming but of a sector largely looking after its customers well?

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    A very large number of landlords are selling, few are buying, I would have loved to buy, the moneys there, but the way things are heading I think I would be foolish to be buying at the present time


    I'm also holding, not buying or selling.

    I can't easily or sensibly spend all the money I have but I have plenty of ways of spending all the time I have, which no longer includes investing it in more properties.


    I’m starting to sell Lads got a horrible feeling the biggest curve ball is about to be flung at us so want to have battle ammunition ready

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    I have started selling and - oh what a tortuous process it is! Valuations decided by mortgage company surveyors worried that the market might fall, solicitors still working from home, searches taking forever, buyers rushing into a decision & then backing out! A great 3 bed Victorian Terrace on the market in January, 'sold' quickly, buyer backed out, 'sold' again immediately - I'll be lucky to see the £ by July!


    I sold a jointly owned one of 15 yrs ago, needed to get out of that partnership, sold almost immediately, then nothing happens for 6 weeks, ask what's going on, the buyer has changed her mind, no one tells you, put the property into auction and it made all the money, auction is often the best route, when it comes to selling property the world is full of dreamers.

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    Not selling yet…. But I have my “plan” in place, the end result will be to sell up prior to the EPC C coming in, this alone scares the bejesus out of me, and it should the govt….. but it won’t.


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