The Q3 2019 rental index from Belvoir has revealed new rental trends, confirming a cultural shift towards more families renting, an increase in the length of a typical tenancy and continued stock shortages that may be further impacted by proposals to abolish Section 21.
“The Q3 rental index, which analyses advertised and actual rents across the network, is prepared for Belvoir by property expert Kate Faulkner, and reveals some interesting trends in the Buy to Let market,” says Belvoir CEO Dorian Gonsalves.
Gonsalves gives us a summary of what is happening across the UK rental market, saying: “The Q3 2019 monthly rental average in England is £819 and when compared to Q3 2018 this reveals a year on year increase of just over 4.75%. Feedback from a cross section of offices in Scotland revealed increases in Dundee, Paisley and Falkirk, with a slight decrease over in Aberdeen. In Wales our Wrexham, Cardiff and Swansea offices also reported increased rents, although rents for flats in Swansea remained flat to falling, which could be attributed to an increase in first-time buyers versus renters. Our Newtownards office in Northern Ireland again reported increased rents, with demand remaining the same and stock shortages of one to four bed properties.
“A survey of a cross section of Belvoir franchisees in Q3 2019 looked at the question of whether there has been an increase in families renting properties in the last ten years. Three quarters of Belvoir offices surveyed reported an increase in the number of families renting, although only 25% highlighted the struggle to achieve a deposit or cope with the cost of buying as the main reason. The increase in families renting is a cultural shift, with reasons including job moves, lack of social/council housing, renting as a temporary solution to avoid losing a sale, or the inability to find a property they wanted to buy, and importantly, many tenants said they preferred the flexibility of renting a larger property in an area that they would not be able to buy.