As we near the second quarter of the year, it’s a perfect time to reflect on the successes of the lettings market in 2022 and how it started off in 2023. While the market has faced its fair share of challenges, it was proven to be a very successful year overall with an influx of business due to an increase in tenant demand and higher yields.
The Head of Lettings, Sofia Lundgren, reviews the current market and looks ahead to what the year may bring, exploring the potential opportunities and challenges.
What contributed to the success of 2022 and has it been sustained in 2023?
Last year was an incredibly successful year for our lettings team with a record-breaking number of deals and more new instructions than we have ever taken on before. I think what contributed to this is the fact that we are privileged to have access to a big, secluded network that other agents don’t. Despite the market in general being low in stock, we managed to stay incredibly busy, doing a lot of off-market deals through our own Quintessentially network. Lucky for us, this trend seems to have carried over onto 2023 and we have had a fantastic start to the year, closing more deals in January and February than we have done in any previous year.
What trends are you seeing in the current property market?
We are in a market which is exceptionally low in supply, but still has a high demand from tenants. Prices has increased significantly over the past years, and most properties now let for the asking price or over. As a landlord you have the possibility of being selective and as a tenant you need to be prepared to make quick decisions since majority of properties let before they even hit the open market. A trend we have seen a lot of lately, that I see carrying on to this year, is the number of deals that are being done off market.
Tips on how to beat the competition and secure a rental home in a busy market?
In a market with high demand and low supply, it’s important for tenants to bring their strongest offer possible to the table. My general advice for tenants in the current market is to not try and negotiate on price but instead come in at asking price, or slightly above, to make their offer more attractive. I also recommend offering a longer-term tenancy, since it offers more stability for the landlord with less likelihood of having a costly void period in between tenancies.
Is this the best time for a homeowner to rent out their property?
It a fantastic time for landlords to let their homes in the current market. Rents are record high, the tenant demand is stronger than ever, and many people are downsizing due to the cost-of-living crisis or putting purchasing new home on hold, due to the increase in interest rates lately. All of this contributes to continued movement and demand on the lettings market.
What’s next for the UK luxury property market?
The start of the year has been incredibly busy with a lot of people from our own global network relocating across the globe, exciting projects and new cooperation’s with big developers launching soon. Due to a stellar year for us in 2022 and that trend carrying on to this year, we have decided to expand both or lettings team and our property management team, which is exactly where we were hoping to be this year.
If you’re looking to rent or rent out a property, now is the perfect time to get in touch with us – we are dedicated to finding the best deal for you.