The landscape of the private rental industry is changeable to say the least and understanding the trends and expectations for the future is crucial for both landlords and tenants. The year 2024 is shaping up to be an interesting one for the UK rental market, with landlords expressing their plans and concerns. Drawing from recent research by Dataloft, we delve into what landlords are projecting for the coming year.
Rent Trends
The rental market has been a rollercoaster in the past few years, with tenants facing significant increases in their monthly outgoings. However, 2024 may offer some respite. According to the latest insights, only a quarter of landlords (24%) are considering raising rents. In contrast, a substantial majority (68%) plan to keep rents steady and a small but notable proportion (8%) even foresee reducing them.
This comes after a period of steep rises, with rents inflating by an average of £135 per month since the last quarter of 2022, and a striking £450 per month when compared to the same period in 2019. This escalation has undoubtedly placed financial strain on tenants.
Prioritising Tenant Retention
Amid the financial turbulence, landlords recognise the value of stability and the benefits of long-term, reliable tenancies. Retaining high-calibre tenants has emerged as a key objective, likely influencing the majority decision to maintain current rent levels. It reflects an understanding that fostering a good landlord-tenant relationship is not only beneficial but essential for a thriving rental enterprise.
Anticipated Challenges for Landlords
Looking ahead, landlords anticipate a set of challenges that could impact the sector. The cost of property upkeep, inclusive of repairs and general maintenance, is a significant concern. These expenses are rising, partly due to inflation and the increasing cost of materials and labour.
Legislative changes also pose a considerable challenge, with landlords needing to stay agile and informed to navigate the shifting regulatory landscape. Keeping abreast of these changes is crucial for compliance and for protecting their investments.
Investment in the Future
Despite the challenges, the private rental sector remains a vital part of the housing market, and many landlords are taking a long-term view of their investments. Property is still seen as a robust asset class and with the right strategies, it can provide sustainable returns. Landlords are investing not just in their properties, but in their relationships with tenants, recognising that a well-managed property and a stable tenancy are key to success.
As we navigate the changing tides of the rental market, it’s clear that staying informed and prepared is more important than ever. Whether you’re a landlord looking to understand the best practices for 2024, or a tenant seeking a stable and fair rental agreement, we are here to help. Contact us for expert advice and support tailored to your needs. Let’s make 2024 a year of successful partnerships and thriving investments in the rental industry.
Footnote: This article references research conducted by Dataloft, in conjunction with Zero Deposit and TwentyCi.
