The headlines from the Q1 2023 Rental Market Report from Hometrack are:
- Rental inflation has slowed to 11.1%, from a high of 12.3% in mid-2022
- A strong labour market and record immigration drove demand in2022. Private rented housing supply has grown just 1% since 2016
- Higher mortgage rates have further weakened the economics of investing for landlords, impacting new investment in rental supply
- Landlords ‘searching for yield’ to offset rising costs will push some to let into different sectors of the private rental market
- The growth in overall rental supply is set to remain limited in 2023. Demand is expected to remain above average but lower than 2022
- Rental inflation for new lets will slow to 4-5% by the year end. The slowdown could be rapid in inner London and other city centres.
You can read the full report online for the Q1 2023 Hometrack Rental Market Report on the Hometrack website.