Epsom Landlords' Intentions and Tenant Financial Pressures
Tue 23 Jan 2024
The landscape of the rental market is ever-evolving, influenced by various factors ranging from economic conditions to legislative changes. A recent survey reveals intriguing insights into the plans and challenges faced by landlords in 2024, shedding light on the delicate balance between profitability and tenant well-being.
Landlords' Rental Intentions: According to a study conducted by #Dataloft, Zero Deposit, and TwentyCi, only 24% of landlords intend to increase rents in 2024. The majority, comprising 68%, plan to maintain rents at current levels, demonstrating a cautious approach to pricing. An additional 8% of landlords have even expressed their intention to reduce rents, signaling a unique trend in the rental market.
Rapid Rise in Rents: The backdrop to these intentions is the rapid escalation of rents over the past few years. Since Q4 2019, tenants have faced an average increase of £450 per month, while the uptrend has continued with an additional £135 per month since Q4 2022. This substantial rise has contributed to heightened financial pressure on tenants, prompting a closer examination of the delicate balance between landlord profitability and tenant affordability.
Landlords Prioritise Tenant Relationships: Finding and retaining high-quality renters is a top priority for landlords, underscoring the significance of fostering strong tenant-landlord relationships. The majority's decision to maintain existing rents could be attributed to the recognition of the importance of tenant satisfaction and loyalty. A robust relationship between landlords and tenants not only ensures a steady income stream but also contributes to a more stable and harmonious rental environment.
Challenges Faced by Landlords in 2024: The survey also delved into the challenges anticipated by landlords in the current year. The leading concerns were the costs associated with maintaining, repairing, and running properties. This was closely followed by apprehensions regarding legislative changes, indicating that landlords are not only focused on the day-to-day operations but are also attuned to the evolving legal landscape in the rental sector.
As landlords navigate the rental landscape in 2024, a complex interplay of factors influences their decisions. While the majority opt for stability in rent prices, the acknowledgment of challenges, particularly in property maintenance and legislative compliance, is evident. Striking a balance between profitability and tenant satisfaction remains a delicate challenge, requiring a nuanced understanding of the evolving dynamics in the rental market. As we progress through the year, these insights will undoubtedly contribute to a more informed and adaptive rental industry.
If you are an Epsom landlord and would like any advice for your rental property, don't hesitate to contact us here at Kaybridge Residential. We would be happy to help.
Call us on 020 8004 0474 or email our Lettings Manager, Nick at nick@kbridge.co.uk