Cushman-Wakefield-Q4-2022-BTR-Report

RENTAL PERFORMANCE

RENTAL MARKET OVERVIEW

AVERAGE MONTHLY RENTS

Throughout 2022, the UK has experienced strong rental growth , largely driven by the ongoing imbalance between supply and demand . The RICS December 2022 residential survey showed a net balance of +28% of respondents reporting an increase in demand in December ( albeit the least elevated f gure since February 2021). New rental supply continued to fall , with a net balance of -24% of respondents reporting a decline in landlord instructions . Rents in the UK excluding London increased from £893 pcm in December 2021 to £977 pcm in December 2022, a 9.4% annual increase . In London , where the supply - demand imbalance has been much greater , rents increased from £1,752 pcm to £2,007 pcm , an annual increase of 14.6%. Annual rental growth varied across the UK , with London experiencing the largest annual growth (14.6%), followed by Scotland (13.8%) and the North West (11.1%). Yorkshire and the Humber (7.2%), Northern Ireland (6.9%) and the North East (6.6%) all experienced the lowest growth , albeit still healthy . In December 2022, some regions experienced a small monthly decline in rent . Whether this is a seasonal e f ect will become clearer in January 2023, but the supply crisis makes a strong case for rents remaining strong in 2023.

£2,000

£1,800

£1,600

£1,400

£1,200

£1,000

£800

Jun -21

Aug -21

Feb -21

Dec -21

Oct -21

Apr -21

Apr -19

Jun -19

Aug -19

Feb -19

Dec -19

Oct -19

Dec -22

Apr -22

Jun -22

Aug -22

Feb -22

Oct -22

Aug -20

Feb -20

Dec -20

Apr -20

Jun -20

Oct -20

UK Excluding London London

ANNUAL RENTAL GROWTH

6.6%

North East

6.9%

Northern Ireland

7.2%

Yorkshire & Humberside

7.4%

East Midlands

7.5%

East Of England

9.2%

Wales

Type something

Average rent in the UK excluding London £977 per month 9.4% Increase from December 2021

10.0%

South East

10.0%

South West

10.9%

West Midlands

11.1%

North West

13.8%

Scotland

14.6%

Greater London

Source: Cushman & Wakefield, RICS, Homelet Rental Index

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