Lettings Market Update: The Northwest & Beyond
This month, we look at what's happening in the lettings market both nationally and locally.
National Rent Trends
In the UK (outside of London), the lettings market has seen a small decline in advertised rents for the first time since 2019, before the pandemic. In the fourth quarter of 2024, rents for new properties dropped by 0.2%, from £1,344 to £1,341 per month. Although rents are still 4.7% higher than last year, this is the slowest growth since 2021.
Supply and Demand
The balance between supply and demand has improved. There are now 13% more properties available compared to the same time last year. This increase in supply is likely slowing down rent growth. At the same time, fewer tenants are looking to move, possibly due to lower mortgage rates that are encouraging first-time buyers to enter the housing market.
Landlords' Market
Landlords need not worry, as rental properties are still attracting multiple applicants, double the number compared to pre-pandemic times. However, with more choices for tenants, landlords should be careful with pricing as tenants are becoming more selective about their new homes.
Regional Lettings Review
North West
In the North West, asking rents increased by 0.1% in Quarter 4 of 2024, reaching an average of £1,182 per month. This is a 5.7% increase compared to the same time last year. Average yields were 7.1%, showing a 0.3% annual increase.
Yorkshire & The Humber
In Yorkshire and the Humber, rents remained unchanged in Quarter 4 of 2024, staying at £1,049 per month, which is a 4% increase from the previous year. Average yields increased by 0.3% to 6.9%.
Ryder & Dutton Lettings Update
2024 has been a positive year for Ryder & Dutton Lettings, continuing to expand our managed portfolio. Our growth comes as landlords trust us to manage their properties and stay updated with new legislation, for example the Renters Rights Bill.
We’ve also seen an increase in demand for our Rent In Time product, which guarantees rent payments even if tenants haven’t paid, and covers legal fees if court action is needed.
2025 Outlook
January 2025 was a record month for new property listings, and February's instructions are also strong. With many new properties available, demand remains high, contributing to the continued growth of our managed portfolio.
Popular Property Types and Locations
- Three-Bedroom Homes: There is strong demand for three-bedroom properties, especially near good schools.
- Properties with Good Transport Links: As people return to office work, properties close to public transport and major roads are becoming more popular.
- Heywood: Known for being affordable compared to nearby areas, it's especially popular with first-time renters.
- Middleton: Offers easy access to open spaces like Heaton Park and great transport links for commuters.
Changes in Legislation
The Renters Rights Bill is expected to become law in Spring or early Summer 2025. Though it may require adjustments, the industry has already adapted to major changes like the 2019 Tenant Fees Act and new EPC regulations.
EPC Regulations and Energy Efficiency
EPC regulations will continue to evolve, with further changes expected by 2030. We're working with a company to help landlords improve their properties' energy efficiency through government grants, which could also help tenants save on utility bills.
If you any questions about the lettings market or becoming a landlord please talk to our team of lettings experts.
