Market Commentary | Winter 2022

As we enter the final quarter of 2022 what has been clear is that tenant demand is still at an all-time high. We are having a lot of conversations about moving before Christmas and have already agreed tenancies for early January.

This year a shortage of rental properties combined with increased demand has driven up rents and it still definitely feels like a landlord's market.  On the back of a strong sales market, a lot of landlords opted to sell their properties this year and thus far, we have not seen enough new lettings stock come to the market to replenish those who have left the private rental sector. Demand has been strong from both local tenants and those moving from overseas using a relocation agent.

Tenants are very much aware of the market and are frequently offering over the asking price to secure their desired properties. They are aware that they need to put their best foot forward and some are offering to pay rent in advance to make their applications stand out from competing bids. We are intrinsically aware that energy bills and the cost of living crisis might stress test some tenants' affordability, therefore ensuring that tenants are suitably referenced and employing the services of professional and credible agencies to find trustworthy tenants will become increasingly important. 

Whilst some landlords elected to sell their properties, we are unsure of the medium to longer-term effects of the rise in interest rates. It could be that those unable to sell but are keen to move can rent their property to make their onward move. We hope that some of these ‘accidental’ landlords will help to ease the increased demand and re-balance the market.