Propoly
  • About
  • Features
  • Calculator
  • Clients
  • Blog
  • Contact
  • Discovery Session
  • Menu Menu
  • Twitter
  • Facebook
  • LinkedIn
  • Youtube

The outlook for property rental in 2023

January 10, 2023/in Uncategorized

The outlook for property rental in 2023.

The impact of recent events on the property market has been widely reported, but what’s likely to happen over the next few months? What effects will economic pressures have on the rental market?

While a crystal ball might be handy when asking questions like this, it’s a better idea to assess the situation using the facts we know and the views of leading economic forecasters. And although the fallout from Covid is still impacting the economy, and we saw market turbulence in the Autumn, it’s a good idea to keep in mind one thing that hasn’t changed and isn’t likely to change any time soon: the UK has a housing shortage and people still need homes.

Long-term factors driving demand

The factors that are likely to shape the rental market over the next 12 months are not short-term. Nor are they isolated from the owner-occupied sector. They arise from the imbalance between supply and demand.

In some parts of the country this is of particular concern. Many urban areas are seeing high levels of demand for rental properties, and, despite cost of living pressures, landlords are easily able to command higher rents. A second trend is that people are renting for longer. With property ownership not an option for many, demand for quality, affordable rental homes will continue to increase.

The cost of borrowing

The most significant recent change is the increased cost of borrowing. Interest rates have shifted from very low figures as the Bank of England attempts to curb inflation. While rates are still relatively low when compared to figures seen in previous decades, the effect of these changes is greater. The high cost of home ownership means relatively small changes in borrowing rates have a big impact on the affordability of mortgage repayments. Household incomes are being squeezed and many hoping to take their first steps onto the property ladder are having to rethink.

Reports of falling house prices are already widespread, but rather than any drastic crash, it seems the market is simply settling back down to where it might have been without the impact of a pandemic. Indeed, many economists are predicting that the UK economy will grow slightly in 2023. A long-term recession may not be on the cards. And those in the rental business may well find that the caution caused by worries about interest rates, works in their favour, boosting demand as home buyers wait to see what’s going to happen.

High demand and a volatile market

Even though demand is high – and increasing – 2023 could well be a very challenging year. With higher rents, higher interest rates, and more expensive mortgages, the market is likely to be volatile, and with cost of living pressures, more tenants could be in arrears.

Whatever 2023 has in store, as a letting agent, it is important to stay up to date with the latest economic developments. While you may not be able to impact economic trends, it’s important not to be passive. Always aim to manage your business as effectively and efficiently as possible, and you’ll be in a strong position to respond to changing market conditions.

Book your discovery session here.

https://www.propoly.com/wp-content/uploads/2023/01/Money-house-piggy-bank.png 900 1600 Kelly Nairn https://www.propoly.com/wp-content/uploads/2023/03/logo-propoly-3.png Kelly Nairn2023-01-10 11:10:142023-01-10 11:13:40The outlook for property rental in 2023
You might also like
Everything you need to know right now – May 2022
WARNING: Judges dismissing eviction cases on a technicality
What the Queen’s Speech means for the lettings industry
10 reasons why you need Propoly
Tough times ahead for buy to let – here’s how letting agents and their landlords can come out on top
Turn the PropTech buzzword into bottom-line returns
Celebrating one year of Propoly: A message from Sim Sekhon
Real value: why every landlord counts

Categories

  • Uncategorized
  • Video case studies

Archives

Book your discovery session today

Let one of our team show you how Propoly can make your life easier

Arrange here

Save money

See how much you could save

Latest

June 30, 2023

LSL franchisees choose Propoly for faster tenancy deals

May 17, 2023

The pros and cons of AI: Separating fact from fiction

February 20, 2023

Finding the right tenant – what does it take?

January 10, 2023

The outlook for property rental in 2023

November 20, 2022

Tough times ahead for buy to let – here’s how letting agents and their landlords can come out on top

Keep up-to-date


  • Twitter

  • Facebook

  • Youtube

  • LinkedIn

Privacy policy

  • About
  • Features
  • Calculator
  • Clients
  • Blog
  • Contact
  • Discovery Session

Tough times ahead for buy to let – here’s how letting agents and their landlords...Finding the right tenant – what does it take? Scroll to top