Andrew Luxton, Senior Partner and Head of Stags Residential Lettings department looks at the current market in the South West region and comments on what is happening:
There is no question that the current residential lettings market in the South West of England is experiencing a period of adjustment. With 22 offices in the 4 counties of the region, Stags has the benefit of actual, evidence-based information to gauge what is happening.
The current factors affecting the market are a combination of high demand - with multiple tenant applications per property - against a backdrop of limited supply. The strongest demand, as ever, is still in the £800 to £1,250 pcm bracket, with average tenancy length increasing (currently 3 years plus) and, as such, a lack of re-let property available. In contrast, the first 5 months of the year has seen demand ease at the top end of £1,500pcm plus with less relocation, and affordability challenges for many tenants, becoming a significant factor. Over the last ten years, rents have increased by approximately 45%, outpacing wages and benefit rates. As such, many landlords have seen their rental yields improve, backed up by a bricks and mortar investment.
The average rent in the South West has risen to £1,166 pcm representing a 6.7% year on year increase, which is slower than in previous years. The market is becoming more balanced between supply and demand, which has resulted in slightly increasing void periods.
The main impact in the latter part of 2025 will be the implementation of the much-awaited Renters’ Rights Bill with Royal Assent likely by the autumn and an implementation date shortly thereafter. This represents the biggest change to impact the industry for 30 years and changes the way in which properties are let and tenancies conducted. Some aspects of the legislation are to be welcomed, but other aspects will lead to some landlords to consider their options. It will take time to see the full impact, but in the short to medium term it is likely to see a continuing rise in rents, with more landlords requiring full management services - benefitting from someone else dealing with all the changes. As ever with new legislation the noise of the change is often worse than the reality, but time will tell.
As a firm, we are fortunate to work on behalf of a large number of individual and small investor landlord clients who provide a good standard of accommodation and are fair to tenants. This won’t change and the South West will always be a region that tenants want to work and relocate to. As such, the demand for rental property will continue to be strong and with increasing yields and capital appreciation, provide a good medium to long-term investment for many landlords. The first few months of this year has also seen an increase in landlords switching property from the short-term holiday/Airbnb market - with falling occupancy and changes in tax rules taking away the advantage - over to longer-term letting. This switch is likely to continue, helping to fill the supply gap.
In summary there is a lot going on and if you require advice or assistance in helping you to plan, then do not hesitate to contact one of our lettings team.
Andrew Luxton, Senior Partner and Head of Stags Residential Lettings department looks at the current market in the South West region and comments on what is happening: 
