Good year for rentals forecast by upbeat agency chief...

The mismatch between demand and supply will keep the rental market strong in 2023 according to an agency chief.

Nicky Stevenson, managing director of Fine & Country UK, says the next 12 months will follow the pattern of the past year.

“Annual rental price growth across England and Wales is currently nine per cent. Apartment price growth is outpacing that of houses, at 11 per cent versus 8.2 per cent” she says.

“With the exception of the South East, at £3,792 the threshold for a premium market rent in London is more than double that of any other region. During 2022, 90 per cent of all new rentals of £3,500 per month or more have been in the capital, of which 65 per cent were apartments. Across the remainder of England and Wales, 94 per cent of such rentals were houses.”

But she accepts that, at some point this year, the rent rises seen recently will moderate even though a mismatch between demand and supply will endure in principle.

“With higher mortgage costs set to impact profit margins, [mortgage lender trade body] UK Finance predicts that £13 billion will be lent to buy to let landlords for new purchases over the course of 2023 and £30 billion to landlords looking to remortgage.

“Both are significantly lower than in 2021 and more in line with pre-pandemic levels.”

And Stevenson cautions that although there will be some major changes for the sector this year - notable changes to Capital Gains Tax from April - the long-awaited Rental Reform Bill will take some time to become law, even if it is introduced into Parliament in the near future.

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Andrew townshend
17 January 2023 09:12 AM

I agree wages need to catch up and they will hence all the strikes coming along, a pay increase of less than inflation is after all a pay cut in real terms, I'm no lover of unions or striking workers but I do have some sympathy.

Simon Logan
17 January 2023 09:14 AM

Tricia -Very sensible comment.

Andrew - Me too, but… the only ones on strike are the public sector, what about the private sector who in reality pay the salaries of the whole public sector ?

Andrew townshend
17 January 2023 09:41 AM

Agree Simon, but I expect many in the private sector will follow, care homes are losing staff hand over fist and cannot recruit new staff, they pay peanuts and for unsocial hours , better off stocking shelves in the local supermarket, private sector workers don't need to strike, they just hand their notice in and move job, which is what is happening in my example of care homes