Has peak rental demand peaked passed? New data says yes
Figures from Barrows and Forrester reveal a quarterly and annual drop in tenant demand despite a crisis in the mortgage market pricing many people out.
Demand for rental homes has dropped slightly new data shows in a surprising revelation.
Most recent figures show rocketing demand, especially as rising mortgage rates price many people out of the sales market.
But the latest index from sales and lettings agent Barrows and Forrester covering rental stock in England reveals a fall of 0.2% in the second quarter this year, and a 3.5% annual drop.
The index shows tenant demand for rental homes across each county of England based on the level of available rental stock that has already been marked as let agreed.
Rental hotspots
Dorset is currently the hottest spot in the nation’s rental market in terms of current tenant demand, at 59.3%.
In West Sussex, demand measures 58.1%, and tenant appetites are also strong in Rutland (55.8%), Somerset (54.1%), and Wiltshire (53.9%).
On the other hand, the coldest spots for rental demand in Q2 were Leicestershire (23.7%), Merseyside (24.7%), and Nottinghamshire (25%).
Herefordshire leads the way in quarterly growth (+7.8%), followed by the West Midlands (+6.6%), Tyne & Wear (+6.3%), and Northumberland (+6%).
Biggest drops
The biggest quarterly drops have been recorded in Cornwall (-14.4%), which, interestingly, was home to England’s strongest rental demand in Q1, followed by Shropshire (-7.1%) and Essex (-4.9%).
Many tenants are sitting tight during times of economic uncertainty.”
James Forrester, MD at Barrows and Forrester, says: “Topline demand for PRS homes has remained largely static during the second quarter of this year, and this suggests that many tenants are sitting tight during times of economic uncertainty.
“That said, the market is generally in a state of limbo during this time of year as many tenants have already made their move whether it be for education or work purposes.”
