By The UK lettings market has seen significant changes in recent years, with a notable increase in rental prices across the country. This blog post will delve into the current state of the rental market, starting with a look at common trends across the county, and then moving onto a particular focus on the local market in Newcastle-Under-Lyme and what this might mean for local landlords and those considering becoming a landlord here in Newcastle-under-Lyme.
Nationwide Trends
According to the Office for National Statistics (ONS), the average cost of rent in the UK rose by 9% in the 12 months to February this year. This is the highest annual increase since records began in 2015. In England, London renters saw costs go up the most at 10.6%, taking the average monthly rent in the capital to £2,035.
These figures are indicative of a broader trend in the UK lettings market. Rent prices have gradually increased across the UK since the ONS began collecting data for the whole of the UK in 2015, but have spiked since 2022. This trend is not limited to London or the South East, but is being seen across the entire country.
The Local Market in Newcastle-Under-Lyme
In Newcastle-Under-Lyme, the average house price was £201,000 in January 2024, showing little change from the previous year. The average monthly private rent in Newcastle-under-Lyme was £683 in February 2024. This was an increase from £649 in February 2023, a 5.3% rise. This rise was lower than the rise in the West Midlands (9.2%) over the year.
Looking at how rents have changed on an annual basis from the graph above, although it appears that rents in the local area have risen and fallen at a faster rate than the rest of the UK, this is in fact largely due to the averaging effect of so many more properties being included in the regional and national figures. In other words when you consider the national picture the extreme increases seen in London at times are often balanced out by much smaller rises elsewhere, smoothing the average picture overall. In truth, and particularly recently, the lettings market in Newcastle-Under-Lyme has been broadly stable. This is driven by a variety of factors, including the local economy, the availability of rental properties, and the demand for rental accommodation.
The Impact of Legislation
The government’s Renters (Reform) Bill aims to give tenants and landlords a “fairer deal”. A key part of this bill, first introduced last May, was to ban no-fault evictions by the next general election. However, the bill has still not passed through the House of Commons.
This legislation could have a significant impact on the lettings market. By banning no-fault evictions, the government is aiming to provide greater security for tenants. However, this could also lead to increased costs for landlords, which could in turn lead to higher rents.
The Role of Landlords
Research suggests that landlords are increasing their prices due to the increased costs of running a rental property. In a survey of almost 1,000 landlords, more than half (59%) said they were trying to “align with local market rents”.
This highlights the important role that landlords play in the lettings market. By aligning their prices with local market rents, landlords are helping to shape the market. However, this also means that landlords are facing increased costs, which could lead to higher rents for tenants.
Conclusion
The lettings market, both nationally and locally in Newcastle-Under-Lyme, is experiencing significant changes. With rising rental prices and new legislation on the horizon, it’s an interesting time for both landlords and tenants. As a trusted local estate and lettings agent, don’t forget Heywoods is here to help navigate these changes and provide expert advice. Drop in to see us or get in touch here, we’d love to help.
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