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Signs that Imbalance in Rental Market is Reducing as Prices Come under Pressure

Posted by Knight Frank Newcastle on 23rd January 2023 -

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There are clear indications that supply in the lettings market is growing from a low base.

Frustration has grown among tenants over the last eighteen months as a scarcity of rental properties has resulted in fast-rising rents. The UK experience has been mirrored around the world as offices and universities re-opened and demand surged.

At their peak last spring, rental values in prime London markets and the Home Counties were rising by more than 20% a year, Knight Frank data shows.

A strong sales market, driven by a stamp duty holiday, low borrowing costs and the ‘escape to the country’ trend led to a sharp rise in the number of sales during the pandemic, exacerbating the supply shortage. 
Things are reversing as mortgage rates normalise and the sales market stutters, which means stock is rising and upwards pressure on rents is relenting, new data shows.

Continue to read Knight Frank article 


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