The Rightmove Rental Trends Tracker Q2 2024

London remains a key area, with average rents rising to £2,661 per month, a 4% annual increase. Inner London, known for luxury rentals, saw rents reach £3,132 per month, while outer London averaged £2,318 per month. The slower growth rate after a sharp 16% increase in 2022 indicates a cooling market, possibly due to more available rentals and changing tenant preferences.

Supply and Demand Dynamics

The market still faces a supply-demand imbalance. Even with a 14% increase in rental properties from last year, the market remains tight, with availability still 20% below pre-pandemic levels. Tenant demand remains strong, though down 16% from last year, with 22% more tenants looking to move compared to 2019. This mismatch continues to create competitive conditions, with properties receiving an average of 17 enquiries, down from 26 last year but much higher than the 8 in 2019.

Policy and Market Sentiment

The report mentions recent government efforts to improve the rental market but notes a need for more support for landlords, particularly in areas like energy efficiency and tax incentives. There's an emphasis on encouraging investment in quality rental homes to achieve a balanced market that meets tenants' needs for quality and affordability.

In-depth Analysis of the North West Rental Market

The North West of England, including Preston, Lancaster, Blackpool, and Morecambe, reflects broader national trends but has unique characteristics. The region has seen significant growth in rental prices, driven by economic factors, housing supply issues, and demographic changes.

Rental Price Increases and Yield Dynamics

In Q2 2024, the North West had an average landlord yield of 7.0%, up 0.5% from the previous year. This rate is higher than the national average, making it attractive to investors. Key areas saw notable rental price growth:

• Blackburn, Lancashire: Rents rose by 18.1%, from £602 to £711 per month.
• Preston, Lancashire: A 14.2% increase, with rents reaching £871 per month.
• Widnes, Cheshire: A 13.7% rise, from £676 to £768 per month.

These increases suggest a robust rental market, likely driven by local economic activity and employment opportunities, as well as an influx of residents seeking more affordable living options compared to other regions like London.

Supply and Demand Factors

The North West's rental market is characterised by high tenant demand and a limited supply of properties. Major employers, educational institutions, and a diverse cultural scene support the demand. However, the supply side needs help to keep up, creating competitive conditions where properties are quickly rented and prices continue to rise.

Economic and Demographic Influences

The region's economy, supported by manufacturing, services, and education, has shown resilience. Investments in various sectors have boosted job creation and attracted more residents. The region's relatively young population, including many students and young professionals, also increases demand for rental housing.

How Farrell Heyworth Can Help

Farrell Heyworth, a leading estate agency in the North West, offers various services catering to landlords and tenants. Our extensive local market knowledge helps landlords set competitive rental prices and manage properties effectively. We advise improving property appeal and maximising rental yields, ensuring landlords get the best investment returns.

For tenants, Farrell Heyworth offers a variety of rental properties to suit different needs and budgets. Whether you're looking for an affordable apartment or a larger family home, we can help you find the right property. Our understanding of local market trends ensures that tenants receive accurate information and support throughout the rental process, making it easier to secure a suitable home.

With the current trends of rising rents and strong demand, Farrell Heyworth's services are invaluable. We can help you navigate the competitive market, providing expert guidance and a wide selection of properties. This makes us a key player in ensuring a smooth and successful rental experience for landlords and tenants.

The Q2 2024 Rental Trends Tracker highlights a rental market still adjusting after the pandemic, with high demand and rising rents. The North West stands out with strong rental growth and attractive yields, making it a key area in the UK rental market.