As a landlord in today’s Private Rental Sector, especially if you’re about to buy new property to let or find your next tenant, you’ll be keeping a close eye on the big news of the day – the inflation rate, the buy-to-let mortgage market, renter demand...
Our latest Lettings Market Report analyses what happened this March for valuable data and expert insight that will help you make a plan:
"March saw the kind of increase in demand you'd expect in the London lettings market this time of year – not the massive injection of 2023, but a solid 9% rise from the previous month..."
Key insights:
• According to Zoopla’s figures, the surge in new listings on the market has slowed, with a 2% rise in March.
• South London displayed the highest applicant demand, with nearly 17,000 new renters.
• East London’s market was highly competitive with 15 new renters per each new listing.
• Applicant demand increased 9% from February, yet as the market followed more typical trends than in 2023, it fell 14% year on year.
Video – Insight for London landlords:
Sarah Tonkinson, Managing Director of Institutional PRS and Built to Rent, shared this insight for London landlords:
Rental and mortgage update for landlords
“Inflation has dipped to its lowest point in two and a half years, with interest rates expected to follow. This should give buy-to-let landlords the green light going into Q2. Furthermore, sales stock is now at its highest in eight years, increasing competition among sellers, which could give pause to landlords who were tempted to sell.”
~ Gareth Atkins, Managing Director of Lettings
“With the Base Rate remaining stable and with considerably less volatility across Q1, we have seen some positive moves in the mortgage market. The 2 largest BTL lenders have dropped rates, Coventry and Skipton have improved affordability assessments and one of the largest mutuals has launched a Limited Company BTL proposition.”
~ Richard Merrett, Managing Director of Alexander Hall: London's Leading Mortgage Broker
Sarah Tokinson: It definitely feels like we are back to a normal pre Covid market which has meant some adjustments in expectations for some. That said, Q1 is now behind us and we are well into the spring market. We had nearly 17,000 applicants register in South London alone this March, and East London’s market was highly competitive, with 15 new renters for each new listing.
Applicants are registering early to secure the best property they can, and they’re telling us that value for money will be a big factor in their decision-making process in Q2. So you’ll need to tailor your approach to what your target audience is really after.
