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West Country review: Lettings market

West Country review: Lettings market

Claire Pile MARLA, Associate Partner, comments on the current lettings market.

There is no doubt that we continue to be within a changing property letting market and, as a result, we are seeing the Covid peaks in tenant demand and rental values now stabilising and the market returning to a more ‘normal’ pre-Covid level.

But what does this actually mean for landlords?

At the time of writing, Stags’ available register of property to rent is 45% up on 12 months ago, demonstrating a greater choice available for tenants looking to move. In addition, we have seen a 41% increase in the number of market appraisals and a 126% increase on new instructions in January of this year compared to 2022. These figures further confirm that the trend of increasing available stock levels is likely to continue.

The increase in supply has been led by uncertainty within the property sales market, with a greater number of property owners looking to let their property as a short- to medium-term option while they confirm long-term plans. In addition, we continue to see a number of those who have previously holiday let or provided Airbnb accommodation now looking at a hassle-free, stable option as people return to their overseas holiday destinations. Also, as the market stabilises tenants are more confident to move, resulting in a greater number of relets coming back to the market.

Although demand is still strong, we are seeing that rents are levelling, particularly at the higher end of the market.  In addition, pressures from the rising cost of living combined with energy prices will also result in tenants being more price sensitive over rents and looking for good value and energy efficient homes.

According to the latest Homelet lettings survey, the average South West rent is currently £1085pcm (UK average £1172pcm), compared to an average rent of £983pcm (UK average £1064pcm) two years ago. With the average only varying by a few pounds over the past five months, this reinforces the return of stability. 

If you are considering your options and would like to discuss your property, the market, or to see how we may be able to help, please contact your local Stags office.