Private renting has more than doubled over the past two decades, according to the 2021 census.
Outside of London rents were up by 9.4%, in December 2022 based on annual figures compared to December 2021, according to HomeLet.
35% of tenant’s income on average now is used on rent. Rents do not show any signs of slowing down either as demand continues to outstrip supply at an ever-increasing rate. Coupled with landlords mortgage interest rates increasing and new reforms in Wales increasing maintenance and compliance costs.
Here at PMPG we are seeing a monumental shift in the way tenants are approaching the sector.
Properties are being let at figures above the asking price as tenants are increasingly “making offers” to secure the property and bidding wars are becoming a daily occurrence in the desperate need to secure a home.
A prime example is a recent property we marketed at £995pcm – we let for £1,400pcm and received offers of £1,050, £1,200 and £1,300.
Incredible scenario ….considering the average rent in that area for a 3-bed house is around £850pcm……but more frequent with the clients we are attracting.
In the month of December, our Lettings HQ in Neath dealt with an outstanding amount of over 3000 calls in and out …….and this included the holiday period. This shows the levels of demand in the market currently.
We have also seen a shift from landlords who self-manage converting over to one of our management services to ensure they do not fall foul of the huge change in rental reform in Wales with the inception of The Renting Homes Wales Act 2016.
This has not just impacted landlords who self-manage but also letting agents themselves with a considerable amount leaving the market (some of whom we are in the process of acquiring) due to the complexities of the new reform laws.
Fortunately, we have over 40 years of experience in the sector, our Lettings Operation Manager Marc alone has been involved in the PRS for over 23 years and has overseen the inceptions of the Tenant Deposit Scheme, Welsh Assembly licensing and then Rent Smart Wales. The reform laws are just another thing we have adapted to and now feels like normal practice.
If you need any advice on any of the above or anything outside of this content, please contact Marc.
More than happy to help to assist and guide and of course more than to help manage your properties if needed.
Look forward to speaking to you.