June was a dynamic month for the rental sector! Last month reflected ongoing shifts in market conditions and policy changes.
Demand and Supply:
The demand for rental houses remained strong, thanks to a mix of reasons such as ongoing population growth, high property prices, and a constant stream of international students and professionals. However, supply struggled to meet demand, particularly in big areas such as London, Manchester, and Edinburgh. This imbalance continued to push rents higher (to add value to your property or increase it’s rental yield click here to download our free tips and tricks guide)!
Rent Increases:
Rental costs across the country increased substantially in June. This was especially noticeable in urban areas where demand often exceeded supply. Rent increases were caused in part by higher living costs, which landlords passed on to tenants, as well as a scarcity of rental units. Rugby and Lutterworth have seen steep increases in rental prices over the last 12 months. Rugby town and villages see strong demand and the Lutterworth area remains popular too.
Energy Efficiency Upgrades:
There was an ongoing campaign to improve the energy efficiency of rental houses. Landlords were faced with new legislation that required upgrades to satisfy higher environmental requirements. While this required considerable upfront investments, it was also viewed as a chance to boost the value and desirability of rental houses.
Technology and Proptech:
Technology usage in the rental sector increased. More landlords and property management organisations have used proptech solutions to streamline operations, ranging from virtual viewings and digital contracts to advanced property management software. This change sought to increase efficiency and improve the renting experience.
Market Sentiment:
Overall market sentiment remained cautious yet resilient. Landlords were adjusting to changing regulatory landscapes and weighing the long-term implications of legislative changes. While some were concerned, others saw opportunities in a sector that is constantly evolving and adapting.
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