A large supply and demand imbalance is still benefiting landlords in some parts of the UK – so where are the best buy-to-let opportunities?
According to new data from Rightmove, Wrexham has emerged as the UK's most competitive rental market.
The Welsh town, which has recently gained attention due to its football club's Hollywood owners, is now facing a different kind of spotlight.
An average letting agent in Wrexham is fielding a staggering 54 enquiries for each rental property that becomes available, far outstripping the national average of 19 enquiries per property.
Tim Bannister, Rightmove’s property expert, commented on the findings:
“Whilst at a high-level there has been an easing in the rental market compared with last year, from speaking with agents, we know that many local markets are yet to feel the effect from these improvements. At the same time, prospective tenants are still likely to be experiencing a very hot and competitive market.”
The data paints a picture of a rental sector under significant pressure across the UK.
Glasgow and Bristol follow closely behind Wrexham, with 52 and 51 enquiries per property respectively, highlighting the widespread nature of the issue.
“To be receiving upwards of 50 enquiries per available rental property in some local areas is an astonishing figure, which goes to show the significant amount of work still to be done to improve the balance of supply and demand across different areas of Great Britain,” Bannister added.
While there are signs of improvement in the supply-demand balance, with a 16% drop in tenants looking for homes compared to last year and an 8% increase in available properties, the market remains far from equilibrium.
The number of prospective tenants is still 17% higher than pre-pandemic levels, while available rental homes are 32% below 2019 figures.
Adding to the complexity of the situation, average rents outside London have reached a record high of £1,349 per calendar month, marking a 5% increase from the previous year.
This growth rate, while significant, represents a slowdown from the peak 12% annual increase seen in 2022.
The rental market's challenges are further compounded by a trend of landlords selling their properties.
A recent Rightmove report identified a record proportion of former rental homes now available on the sales market, potentially driven by high mortgage rates, the prospect of increased capital gains tax, and rising costs for landlords.
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