Lettings Market Updates, Summer 2023

Asking rents for new tenants continue to rise nationwide and are linked to the current UK economics dominated by inflation, rising mortgage and interest rates.

According to the latest stats from Rightmove, the average asking rents for new tenants recorded in June 2023 were for over £300 (33%) higher than the pre-pandemic 2019 rents. The average asking rents for new tenants in London are rising the fastest and have reached a new record of £2,567 pcm. Londoners are currently spending 40% of their income on rent. The ONS data shows that for the 12 months to May this year rentals in England are up 4.7%.

There has been a slight increase in the rental stock nationwide: available properties were up by 7% compared to the number recorded during the same period last year. Still, the overall number of rental properties is decreasing across the country.

Tenant demand is up by 3% compared to last year, and the pressure on the rental stock is likely to increase. According to recent data there are 20 viewing requests to each available property in Britain. A high number of UK renters declares that this is not the right time to buy a property and therefore will delay the purchase for some time in the future. In London alone, a new wave of students from September will certainly make an impact on overall availability of rental stock.

Landlords, on the other hand, are navigating through various challenges including the latest taxation and compliance requirements, and some area turning to sales. Rightmove reports that 16% of properties for sale were previously on the rental market, up from 13% in January 2019.

What are the biggest challenges faced by landlords?

One of concerns affecting landlords this summer 2023 is the forthcoming change of the UK EPC regulations, although there are indications that the upcoming deadline could be pushed back.

Just as a reminder, the new regulations (announced in 2021) require that all rented properties must have an EPC certificate rating of C or above. The date for newly rented homes to comply is 2025. Existing rented properties would need to comply by December 2028.

The UK lettings market is on the trajectory of complying with many recommendations from the green agenda. Going green has also become part of property businesses’ goals as the competition to win ‘green aware’ home movers becomes more intense.

In the just published study, Rightmove finds that going green for many UK landlords may take some years, if not decades. Currently 50% of rental homes rate D or below. The survey finds that ‘it would take 31 years for all houses for rent on Rightmove to reach at least an EPC rating of C, and 16 years for flats’. The number of landlords that would not buy a rental property if rated below C is up 61% from 47% in 2022, says Rightmove.

Where are the most energy efficient new homes in London?

Amongst the most energy-efficient and sustainable new homes in Central London are the recently built flats and houses in the award-winning Elephant Park neighbourhood in SE1 and SE17.

Within the development, along the leafy Wansey Street, is a collection of exceptional terraced houses built to comply with the international Passivhaus energy performance and efficiency standards.

Smartly designed and equipped with high-quality and low-energy usage appliances, these houses provide easily maintained flexible interiors ideal for a family. Excellent thermal insulation throughout featuring airtight triple glazing contributes to a substantial reduction of energy usage and a healthy steady temperature. Generous ground floor bay windows bring natural light into the interior which is fitted with the latest tech for controlling heating and lighting. The internal living space extends out to a shaded ground floor patio at the rear, and a large sun terrace is accessed from the top floor bedroom.

Elephant Park has a combined heat and power plant or energy centre (CHP) delivering heat and hot water to residents ensuring minimum energy loss and 30% less water consumption than in an average in London household.

Located very close to the Elephant and Castle transport hub with Tube, Rail and Bus services, Elephant Park has been planned to encourage walking and cycling. There is a great network of pedestrian pathways, walkaways, passages, and footpaths, as well as dedicated cycle lanes.  Residents have a range of cycle storage facilities within the development which also is home to one of Fix Your Cycle service and repair shops. Elephant Park has a location for a major London car club scheme as well as an electric car charging station.

Check the Passivhaus lettings collection by calling:

Or, get in touch with our Elephant and Castle branch for Wansley Street houses available for sale call: +44 020 3869 2898 or email: eandc.sales@chaseevans.co.uk