According to the latest data revealed by property listing platform Rightmove, the average advertised rent for new properties in the UK has reached a record high, with prices outside of London now averaging £1,314 per calendar month. Looking for a cottage to rent in the Cotswolds can be an emotional journey for a tenant in such a competitive market. And equally, property owners want to ensure they match the highest calibre of tenant with their cottages to rent in the Cotswolds.
Rising Rental Prices
Rightmove’s Rental Trends Tracker for Q2 2024 indicates that whilst there has been a noticeable decrease from the 12% peak increase seen in 2022, average rental prices have more recently increased by 7% compared to 2023.
As the overall balance between supply and demand has improved in the second quarter, the number of enquiries per rental property has decreased from 26 to 17 year-on-year. However, the rental market remains busier than pre-pandemic levels and the number of enquiries figure is more than double the 2019 average of eight enquiries per property.
Across the UK, the number of homes available for rent is still 20% below 2019 levels, with 22% more tenants looking to move compared to the same period.
Here in the Cotswolds we have seen a slight balancing between the supply and demand, however we are consistently managing waiting lists of tenants with our portfolio of cottages to rent in the Cotswolds being snapped up after the first few viewings.
Demand for More Rental Properties
It has come as no surprise to us that over the years the rental stock levels have decreased across the board, with recent governments making several changes to the tax allowances available to landlords. Rightmove have now suggested that 120,000 additional rental properties are needed to return rental price growth to pre-pandemic levels of 2-3%. This highlights a significant gap in the current market, emphasising the need for an increase in the volume of rental homes available to meet demand.
Our network of connections and knowledge of the Cotswolds property market ensure we are continually adding to our portfolio of cottages to rent in the Cotswolds. Our team work hard to ensure we have a variety of properties that can meet the demands of the local rental market.
Government Initiatives and Landlord Support
There are positive signals from the new government regarding potential improvements in the rental market. The Labour party has pledged to build 1.5 million more homes, which should increase the available stock levels should some be taken up by the private rental sector.
Tim Bannister, Rightmove’s Director of Property Science, emphasised the ongoing challenges in the market: “With 17 enquiries for every available rental property, the market remains out of balance and difficult for tenants. We need landlord investment to increase stock and help achieve a healthier supply and demand balance.”
Bannister suggests that there is an opportunity to encourage landlords to invest in quality homes through tax changes, incentives for energy-efficient upgrades, and a more collaborative government approach. “Support for both tenants and landlords will be key to achieving long-term stability in the rental market.” he added.
If rental prices in the UK continue to rise, securing a desirable property in popular areas like the Cotswolds may become increasingly competitive. Here at The Cotswold Letting Agency we work closely with tenants to support them in finding their dream rental.
Both Olly and Jemma continue to build strong partnerships with property owners, offering guidance and advice throughout the onboarding process. And once a new property joins our portfolio, the team take care of the entire marketing, viewings and checking in process so that our owners can enjoy a hassle free Cotswold rental experience.
