Rents for new lets have increased by 11.5% in Stockport

Rents for new lets have increased by 11.1% in January 2023 compared to the same month a year before.

New research just released by Zoopla, the property listing portal shows that rents have increased by 11.1% in January 2023 compared to January 2022. The figure varies greatly across the UK, with rents in London representing the top of the scale with an increase of 15.2%, while prospective tenants in Northern Ireland have only seen an increase of 5.7%.

The data comes from Zoopla's property listings, adjusted to reflect differences between asking and actual rents, with the average rents shown being based on the median of one, two, three and four-bedroom homes for each month to January.

Closer to home, rents in Stockport have seen an increase of 11.5%, just above the average increase, with rents in Manchester rising by 13.8%.

The number of properties available to rent has fallen by around 30% over the past 18 months, with this decrease in stock helping to drive up demand - and therefore prices. But although the number of available rentals has decreased, the number of actual rental properties has not. Tenants are now competing with far more other people in their search for a property, leading to fewer properties on the market at any one time. This coupled with the increase in the cost of living means people are tending to stay put, meaning fewer properties become vacant.

While stock is low, demand for rented accommodation has increased to more than 50% above normal according to Zoopla. This increase has been fueled by the economy starting up again following the pandemic and record immigration. However, there is something of a perfect storm as new investment by landlords has decreased in the same period, fueled by increased mortgage rates, tax changes and new regulations for rented properties.

Sadly, the situation does not look like changing anytime soon. The government is looking to introduce the new Renters' Reform Bill this summer, including plans for a landlords ombudsman, which it says will redress the balance in the market and provide more security for tenants. However, the bill places many more burdens on landlords which may well make matters worse for the supply side of the private rented sector.

Is it time to review your lettings portfolio? Contact us on 0161 511 5339 or complete our contact form for a free, no obligation consultation to discuss your portfolio and lettings strategy for the future.