Deepening, softening, and rumbling. This week in property.
Rental sector crisis deepens as rents soar and landlords quit
New research released this week, which gathered responses from nearly 3,500 landlords, tenants and agents, highlighted a sector under increasing strain ahead of significant legislative changes with the forthcoming Renters' Rights Bill.
Key findings from the survey on landlord sentiment included that 67% believe the private rented sector has deteriorated, with nearly half planning to leave within five years. 75% of landlords have been in the sector for over a decade with just 3% of landlords entering the market in the past year and 58% of have made eco-friendly upgrades, driven by tenant demand and regulations.
Total Property’s CEO, Eddie Hooker said, "Rising costs, increasing regulation, and shifting tenant expectations are reshaping the market, and this survey reveals just how deep these challenges run. With nearly half of landlords considering leaving the sector in the next five years or reducing the size of their portfolio, and tenants struggling with affordability, urgent action is needed."
In other news
Average void periods stretch to record lengths as rental market shows further signs of softening
The latest data released by Goodlord this week revealed that overall, rents were up by 4.6% year-on-year in January 2025, ending the month at ￡1,207 per property, on average. This is up from the ￡1,154 recorded a year ago, in January 2024.
However, despite the increase in rents, voids lengthened in January - going from 21 days in December to 24 days in January. This points to a softening of demand in the market.
Voids are typically their longest in January when the market is quiet. However, this is the longest average void period recorded by the Index since April 2021 - making this the highest period for voids in almost 4 years.
The biggest increase in voids was recorded in the West Midlands, where averages lengthened from 18 days to 23 - a rise of 28%.
The only region to not record a rise in voids was the South East, which held steady at 22 days. Conversely, this was also the only region to record a reduction in average rents.
Goodlord CEO, William Reeve , said “There’s a lot to analyse in this month’s Rental Index. On the face of it, you have another month of rising rents and a rebound in the pace of year-on-year increases. But when you dig a little deeper you can see that the void periods are at their highest since 2021 and confirmed rents are meaningfully undercutting advertised prices."
Rumble with the Agents celebrates 10-year milestone with new event in Newcastle
Renowned charity boxing event, 'Rumble with the Agents' is celebrating its 10-year anniversary with two spectacular events in London on 19th June and, for the first time, a second event in Newcastle on 4th December.
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The London event, taking place on 19th June, will be headlined by Total Property as the main sponsor and will raise funds for Centrepoint, a charity dedicated to supporting homeless young people. The Newcastle event, held on 4th December, will support local charity Legends on The Bench, founded by Spurs legend Micky Hazard to tackle mental health issues and prevent suicides through community support initiatives.
Paul Shamplina , founder of ‘Rumble with the Agents’ said, "Over the years, we have supported eight charities and built an event that blends fun, competition, and an amazing atmosphere. This year, we’re going bigger than ever - not only returning to London but also expanding to Newcastle to engage the property community up there."
Which areas have seen the strongest buy-to-let returns over the last five years?
The latest research by London lettings and estate agent, Benham & Reeves , has revealed that whilst the London property market has boasted one of the strongest performances when it comes to the average yield secured for Buy-to-Let investors over the last five years, one region has outperformed the capital.
According to the findings, across England as a whole, the average buy-to-let investor has enjoyed an average rental market yield of 4.17% over the last five years.
London remains one of the strongest areas of the market when it comes to investing in rental bricks and mortar, with Buy-to-Let investors enjoying an average rental yield of 4.42% over the last five years. However, one region outperformed the capital...
Where were the top landlord investment hotspots of 2024?
Postcodes serving students and large employment markets topped Paragon Banking Group PLC 's list of locations that attracted the most buy-to-let investment in 2024.
Analysis of Paragon Bank’s lending data has revealed that CF24 in Cardiff was the postcode most favoured by its buy-to-let landlord customers last year.
The postcode includes Cathays and Roath, which are amongst the most popular areas for the annual influx of students who relocate to the Welsh capital to study at one of its three universities.
Landlords investing in the area can achieve average rental yields of 8.7%.
Neil Smith, Head of Surveyors at Paragon Bank, noted: “Even though privately rented homes are in short supply all over the UK, landlords are strategic and often target locations with consistently high demand; cities where we see large transient populations, such as students and temporary workers, alongside more permanent residents like young professionals and families."