According to Rightmove’s latest rental tracker, average asking rents increased at the fastest rate on record at the end of last year, and are now 9.9% higher than Q4 2020. The portal is also predicting they will rise by another 5% this year as demand continues to outweigh supply, and that rental yields in the UK are at their highest point since 2016.
Interestingly, flats have seen the highest increase in competition compared to 2020 (up 132%), followed by terraced houses (+40%) and semi-detached homes (+30%).
This is astonishing given the nation has been through a pandemic, but it’s been the sheer volume of tenants that has caused such impressive figures for landlords. The competition between tenants has nearly doubled compared to this time last year – up 94%. Whilst demand is 32% higher. Meanwhile the number of properties available to rent have reduced by 51%, which are all supporting these rent rises.
For the south east, the average asking price is now £1,514 – an annual change of +9.8%, whilst the average yield has risen 5.2%. The race for space in more rural areas has no doubt fuelled this trend.
Chichester and its surrounding towns and villages have been high on the agenda for tenants seeking country life. Our area has been well documented in the national property press for the joys of living here, along with being home to some of the most expensive properties (great news if you are considering selling in the future). At Hancock & Partners, we have seen how strong the desire is. Wellbeing, home offices, outdoor space, pet friendly homes, alfresco dining and even separate utility rooms for washing dogs have all shot to the top of tenants’ checklists, with demand far outpacing supply – keeping our lettings team super busy.
Last year, most of our properties let within a week of hitting the portals, at good prices too. Despite the pandemic, landlords didn’t need to reduce their rents due to the imbalance between supply and demand. For 2022 therefore, the lettings team at Hancock & Partners expect tenant demand to remain strong, keeping upwards pressure on rental prices until more properties become available for let. Having seen a huge increase in the number of tenancy renewals as well, landlords with good tenants should be at less risk of void periods too.
Find Out More
For more information about becoming a landlord or increasing your portfolio in and around Chichester, contact our friendly lettings team at Hancock & Partners.