Rental market update 2023
In many ways the rental market has never been better.
While there is a lot of demand, spiralling costs stemming from new legislation, higher interest rates and investing in updated properties to meet energy efficiency bands, means landlords have been forced to increase rents.
The industry is becoming more regulated, and more people are renting for longer due to the cost-of-living crisis. 2023 signifies a long future of what is becoming a much better relationship between landlords and tenants, with tenants enjoying more rights and becoming better protected with proposed changes such as the renters reform bill.
You get what you pay and there is a strong case to be made that while costs are going up so is quality.
Many people would rather pay a bit more and enjoy the peace of mind that comes with better contractual legislative agreements, and protection, more energy efficient homes and better standards of property.
Higher standards
Over the years the standard of rented properties has improved massively. With some tenants choosing to invest in life experiences and quality of life over bricks and mortar. Life is an adventure and as the UK adopts a more European approach to renting, landlords invest more and more in providing great places to live. Modern refurbed houses, flats and apartments offering new energy efficient appliances, integrated with technology so tenants can work from home.
The rental supply may improve
While demand for rented property is still strong this year there may be a small increase in the supply of rentals as some existing landlords sell up. Others will take the opportunity to evolve their property portfolios. The increase in supply will not be significant though. Many developers completing projects this year; creating great living spaces, means some exciting new rentals are entering the market.
Renters are likely to house share
The rental market this year is seeing and will continue to witness more house shares. Becoming more popular with young professionals in what were typically student dominated areas not to mention suburbs. This is good news for tenants and landlords. Landlords spread the risk and don’t have to rely on one tenant while getting a good return. Tenants get a great place to live with all the facilities of a family home with a vibrant social scene without the sole responsibility for paying the rent.
Increase in demand for more compact properties
There’s also more demand for smaller more efficient homes such as one-and two-bedroom flats. Modern, clean and low maintenance is a more appealing way to live while you save to get a foot on the property ladder. Affordability is a big factor for tenants, some now renting a house, may decide to downsize to a flat. The appeal here is also lower running costs, heating and energy bills are generally more affordable in more compact properties.
Summary
Looking into the future is like looking into a crystal ball. That said on thing is certain when it comes to property markets the rental market is the most stable and most predictable with demand still soaring.
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This article was originally published by BriefYourMarket and is reproduced here with their permission.
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