16 Dec Rental market trends for 2023

Rising rents, increased demand yet a lack of properties – this has been the picture of the rental market in 2022. But as we head towards 2023, what can landlords and tenants expect to see? Will the prices level out? Or are they set to grow even more? We look at the biggest rental market trends for 2023 and beyond. 

Increased demand 

The pandemic and subsequent lockdowns saw rental prices drop all over the UK. Summer 2022 saw rates return to pre-pandemic levels and, in some instances, rents were actually higher than they had been before. Despite this demand, there’s a significantly lower number of properties available. In fact, in Q3 2022, statistics show that there are 26% less homes to rent compared to the pre-pandemic average. 

A RICS survey even revealed that demand from prospective tenants has increased every month since May 2020. This isn’t set to slow down either and, with increased demand and less supply, rental prices could stay high too. 

Suburbs are favoured 

Industry reports have identified that single-family rentals are still popular with the number of tenants living in suburban areas growing over the last five years. The Buildium’s Industry Report even revealed that 68% of respondents are looking for a safe and family-friendly neighbourhood that’s quiet. 

What’s more, renters are also looking for more indoor and outdoor space that offers them opportunities for their families to grow. Most respondents also wanted a child-friendly home with a washer, dryer and dishwasher. PwC’s industry report also found that residents wanted flexible space which could be used as an office as demand for remote working continues to soar.

More Build to Rent 

As landlords face higher mortgage rates and additional energy-efficiency rules, we could see an increase in specialist companies taking over the sector. In fact, we’re now seeing more Build to Rent schemes popping up around the country whereby large companies can keep operational costs down and provide a high level of service to tenants. Not only are these Build to Rent properties of a new and high standard but they’re also likely to be more energy-efficient – which is much-needed in the current climate. 

Of course, these are just rental market trends for 2023 and it’s important to remember that things in the property market can change fast. If you have any questions about the above information or want to discuss another rental property question, our team of property experts is always here. Feel free to pop into our Chapel Street office or pick up the phone today.