The number of lets agreed and new instructions in the rental market have fallen by 19% and 25% respectively in Q3 compared with the same period in 2019, new research from TwentyEA shows.
The downbeat performance of the sector is highlighted starkly in the Regional and Major City tables.
Edinburgh is an outlier at +37.8% compared to Q3 2019, albeit from a low volume of transactions, whilst all other locations have seen double-digit declines. The largest decline can be seen Plymouth (-37.4%) followed by Glasgow (-31.0%), Newcastle Upon Tyne (-29.8%) and Cardiff (-25.2%).
Rental Lets Agreed by Regions & Major Cities Q3 2019 compared to Q3 2022
| Major Cities | Change | UK Region | Change |
| Edinburgh | 37.8% | East Midlands | -12.3% |
| Nottingham | -12.7% | East if England | -14.0% |
| Birmingham | -14.7% | Outer London | -14.2% |
| Leeds | -14.8% | West Midlands | -16.3% |
| Southampton | -17.3% | South East | -16.7% |
| Peterborough | -19.3% | Yorkshire and The Humber | -18.8% |
| Manchester | -19.5% | Inner London | -20.0% |
| Inner London | -20.0% | North West | -20.3% |
| Sheffield | -20.1% | Scotland | -20.7% |
| Bristol | -21.0% | North East | -23.0% |
| Norwich | -22.9% | South West | -28.5% |
| Cardiff | -25.2% | Northern Ireland | -29.9% |
| Newcastle Upon Tyne | -29.8% | Wales | -31.8% |
| Glasgow | -31.0% | ||
| Plymouth | -37.4% | ||
Source: TwentyEA Data, November 2022
As of September 2022, all regions have settled at around 1.5 months of available stock from two months in September 2021.
Lack of rental stock and continued demand are the drivers of higher rental prices. The average asking price across the UK was sitting at £1,605 per month in Q3 2022, 19% higher than in Q3 2019.
Stuart Ducker, solutions director of TwentyEA, commented: “The challenges faced by the lettings sector are laid bare in the Q3 2022 numbers, compared with Q3 2019. Lack of supply is compounded on the demand side as tenants are undoubtedly deferring decisions to buy as a result of higher house prices, inflation and interest rates.
“In contrast to the owner-occupied sector, there is a marked supply and availability issue, as some landlords withdraw from the market, as tax changes put in place in 2019 have reduced incentives.
“Pressure on the supply and demand side means that this situation is unlikely to improve in the near term. Landlord incentives have been dulled by legislative and tax changes, whilst the reduction in the buy-to-let mortgage products will inhibit any significant injection of new supply. Households deferring decisions to buy due to adverse economic conditions will tend to increase demand.
“Rising rent prices are likely to continue as higher interest rates and inflation may be passed on by landlords, whilst supply constraints and demand pressures continue to apply.”
Now why is Wales as a region at the top of the drop!
Could it be the relentless attack of landlords, championed by a labour run government all in favour of tenants with their new legislation due out on 1st December 2022. Having taken a look at their new laws, you need to be a lawyer to understand all the re-written jargon and what came out above all is that they have given the tenant the job of policing the landlord and get paid for anything they can find that will benefit them. Just what a rogue tenant dream about! So poorly scripted and on first glance … shock horror, WTF, I’m not interested, is probably a common reaction by landlords? Know wonder they are leaving 31.8% in a quarter is staggering. My money is on over 50% in Wales will sell in 2023.
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Duh… lack of supply = higher prices.
Good job scaring away all the landlords, this is the result.
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