Covid-19 caused for rental properties to plummet because of the impact the pandemic had on business activity and personal living whilst economic growth had stunted. With the national average of rents outside of London continually rising, the new record of £1,126 (PCM) is up 3.5% from the previous quarter and 11.8% from last year. With a high demand for tenants but insufficient available housing, and a shortage of high-quality property, specifically applicants who were looking for houses to rent in Leeds were looking 6-10 weeks ahead of their required move in date. This is a huge increase from 2021, when applicants started looking 4-6 weeks before their need. Last year, there was an extraordinarily high number of tenants attempting to relocate, and the trend has continued this year.
Since the beginning of the Pandemic:
- Asking rents outside of London are up 19%, 2 years since the pandemic started. Something which took 8 years prior to the start of the pandemic.
- Q2 asking rent increased to the second highest in 10 years.
- London also saw a new record average asking rents of £2,257 pcm, with annual growth now exceeding 15%, the highest ever annual rate of any region
The Rental demand is up 6% compared to last year and available properties are down 26%. Landlords based in Leeds and Bradford can experience an average 6.7% yearly yield, annually increasing by 0.4% per year. This is 1.7% above the UK average, the North East currently has the highest potential rental yield, been 3.1% above the UK average.
For tenants the Cheapest rent hotspot in the UK is Torquay, with an average £857 PCM. Compared with last year’s £726 PCM, resulting in an 18.0% annual change.
Houses to rent in Yorkshire and the Humber currently have an average monthly price of £875, with a yearly markup of 12.3% and a quarterly increase of 3.1%.
Q3 And Q4 projections
Construction wise, the growth of new builds is likely to slow. Currently there’s a mixture of competition for new builds, with them been purchased before construction has even started paired with a persistent lack of supplies and labour. The reasons remain the same, simply the effects of Brexit, the pandemic and global shortages. Where it has become even more difficult is that there is now a chronic scarcity of houses on the second-hand market since sellers do not feel they will have anywhere to move, therefore the scarcity of houses to purchase continues.
A seller’s market emerges when supply is less than demand. In other words, there are many prospective buyers but not enough available houses. Because there are fewer residences available, sellers gain. Homes sell faster in a seller’s market, forcing buyers to compete for the same property.
Selling a house that just won’t sell? We recognise that it may be taxing, especially when it costs you money. That is why Valor Properties operates on a ‘no sale, no fee’ premise, which means you will only pay when the property is sold.
To sell your property, choose valor:
Telephone: 0113 222 4537