MHHG estate agents

The UK rental market in November 2023 experienced a slight slowdown, characterized by a monthly decrease of -0.3%. Despite this minor dip, year-on-year rental prices continued their upward trajectory, marking an 8.9% increase. The average rent now stands at £1,279. Notably, the prime market saw a robust 5.8% yearly growth, with the average rent reaching £3,854. Regional variations persist, with the South West leading at an impressive 16.8% annual rise.

Market Trends:

Following a bustling summer, the marginal decline in rents during November aligns with typical seasonal patterns. However, it also raises the possibility of an emerging slowdown in the rental market. Looking ahead, forecasts indicate a continued rise in rents throughout 2024, bolstered by the enduring supply-demand imbalance. Nevertheless, there are anticipations of reaching the 'affordability ceiling' in 2025.

Renter Preferences:

A noteworthy aspect of the current rental landscape is that over a quarter of renters are choosing to rent rather than doing so out of necessity. 37% of renters plan to continue renting for two years or more. The allure of flexibility, a higher standard of living, access to amenities, and the ability to work remotely are cited as key reasons for choosing to rent.

As the colder months set in, tenant preferences are shifting. Approximately 55% of renters express a preference for having utility bills included in their rent, with 44% stating that they would be more inclined to rent a property where bills are included. This sentiment, however, contrasts sharply with the current market reality, as only 12% of properties incorporate bills within the asking rent.

Recommendations for Landlords and Agents:

In light of changing tenant preferences, landlords and letting agents may find value in considering the inclusion of utility bills in rental agreements. This adjustment aligns with the desires of the majority of renters and could enhance property attractiveness in a competitive market.

While the market shows resilience with positive annual growth, stakeholders should monitor the signs of a potential slowdown. Understanding and adapting to the evolving preferences of renters will be crucial for maintaining a competitive edge in the rental market. As the forecast suggests a continuation of rent increases in the coming year, strategic planning and adaptation to market dynamics will be essential for both landlords and tenants alike.