The buy-to-let market is proving resilient, even in the face of potential legislative changes from the new government. According to lettings giant Connells, the private rental sector performed robustly in the second quarter of 2024.
New instructions surged by 6%, hitting their highest level since July 2020. While tenant demand eased slightly by 2%, the increased stock levels balanced this out, leading to a 3% rise in tenancies agreed compared to Q2 2023.
The average rent across the UK hit £1,464 per month, a 6% increase from the same period last year. However, as stock levels grew and tenant demand softened, the overall growth rate of rental prices slowed.
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Regionally, there were some interesting shifts. The South East and the Midlands saw a dip in rental values in June, while Scotland, northern England, and the East experienced a rise.
A Connells spokesperson shared their optimism: “We’re buoyed by the activity we’ve seen during the second quarter of this year which demonstrates that, despite some uncertainty surrounding policies in the sector, confidence from investors is on the increase. We’re pleased to see more instructions, more tenancies agreed and more landlords staying with us, contributing to an overall positive outlook as we look towards the latter half of the year.”
The spokesperson also highlighted the sector’s solid returns for investors: “The UK private rented sector is offering solid returns for investors, and our recent data supports this. We continue to see corporate investors and institutional capital enter the market, generally viewing it as part of a long term strategy which will generate stable returns. As the largest property services group in the UK we are perfectly placed to assist investors at every stage of the asset lifecycle.”
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