Rental Property Market Update

Jonathan Parker - Head of Residential Lettings

A recurring problem that we have seen over recent years is a shortage of rental properties which are available for long term lets. This is positive news for landlords as it means that rents remain high or are increasing and there are minimal void periods, however it is understandably frustrating for tenants.  
 
The reasons for the shortage of rental properties is a complex one and varies by area. There continues to be an increasing demand for properties, and tenants are generally not moving as often as they have previously done so (possibly as there are limited choices of properties they can move into). We have seen in some areas an increase in holiday lets and ‘Airbnbs’ which has reduced housing supply not only in popular tourist areas such as the Northumberland Coast but also for example in Newcastle City Centre and Quayside as well as Durham City. We have also seen an impact of legislation such as selective licensing reducing the number of properties in some areas as landlords find that they properties do not comply with stand.  
 
It would appear that reducing short term lets is very much on the Government agenda, a consultation published recently by the Department for Levelling Up, Housing and Communities will propose introducing planning permission for an existing home to start to be used as a short term let.  It has also been widely reported that there will be changes announced in the Budget to the tax rules applicable to Furnished Holiday Lets.  
   
We have a large number of tenants waiting for rental properties across the North East and if you have a property available to rent out please contact our teams who would be happy to help.