As we enter the final quarter of 2024, Hull’s rental market shows some notable trends, reflecting broader national shifts in supply, demand, and rental prices. Rightmove's Q3 Rental Trends Tracker reveals essential insights into the state of the rental market across the UK, and here's how these trends are playing out in Hull.
1. Record-High Rents Amid Slower Growth
Across the UK, average advertised rents outside of London hit a new high of £1,344 per month, a 5.2% increase year-on-year. However, this is the slowest growth since 2021, indicating that rent increases may be stabilising. In Hull, we’re seeing similar trends, with consistent demand sustaining rental prices even as growth begins to moderate. This stability can be positive for landlords, offering them predictable returns while keeping properties attractive to a wide range of renters.
2. Supply and Demand Dynamics
Supply pressures remain a critical factor in the Hull rental market. Although the number of rental properties available in the UK has risen by 13% compared to last year, supply still lags 27% behind pre-2019 levels. Hull’s market mirrors this national shortage, with letting agents experiencing high demand. While tenant enquiries per property have decreased slightly from the previous year, they remain nearly double those seen in 2019. For landlords, this means reduced vacancy periods and sustained demand for well-maintained rental properties.
3. Impact of Upcoming Regulations on Landlords
With potential changes to Capital Gains Tax in the upcoming budget and new EPC requirements set to take effect, some landlords are reevaluating their portfolios. Nationwide, 18% of properties currently for sale were previously rental homes, indicating that regulatory pressures may prompt some landlords to consider selling. For those in Hull, complying with the EPC C minimum rating by 2030 could mean investing in property upgrades. This may be an ideal time for Hull landlords to assess the long-term costs and benefits of retaining rental properties, especially considering the strong demand and steady rental yields.
4. Tenant Competition Eases Slightly
While demand is still robust, there has been a slight easing of tenant competition. The average number of enquiries per property is down from 23 last year to 15. However, this is still considerably higher than the pre-pandemic levels. In Hull, this trend suggests that while landlords may not face quite the same surge in tenant interest as in 2023, properties are likely to let quickly when priced and presented well. Properties with modern, energy-efficient features remain particularly desirable, aligning with tenant preferences for affordable energy costs amid rising living expenses.
5. Outlook for Hull’s Rental Market
Hull’s rental market is likely to remain strong through the end of 2024, supported by affordability and high demand relative to supply. For landlords, focusing on compliance and considering strategic upgrades could be beneficial in maintaining and even enhancing rental yield. Properties that meet energy efficiency standards and provide good value for money will be particularly attractive to Hull’s diverse rental population, from students and young professionals to families.
At Lime Property, we help Hull landlords navigate the rental market, offering expert advice on market trends, property management, and regulatory compliance. For more information on how we can support you in maximizing your investment, contact us at 01482 216060.
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