Reflecting on 2024 and Preparing for 2025
As we step into 2025, the property market continues to evolve, presenting both challenges and opportunities for landlords. Reflecting on 2024, we observed significant shifts in tenant demand, rental property availability, and average rents achieved. These changes, coupled with legislative developments, provide valuable insights to help landlords navigate the year ahead.
This report compares 2024 to 2023, offering an in-depth analysis of market trends, practical advice, and predictions to help you optimise your portfolio in 2025.
To discuss the insights presented within this report, or for personalised advice, please contact Michael Gallagher on 0118 955 9701 or email [email protected]
Applicants Registered
The 13.2% decline in registered applicants reflects changing tenant behaviour, influenced by rising living costs and a preference for longer-term tenancies. The increase in corporate build-to-rent developments also contributes to this trend.
Fewer applicants mean landlords must focus on tenant retention and competitive offerings. Properties with energy efficiency upgrades, proximity to transport links, and value-for-money pricing are most likely to secure tenancies quickly.
One of our landlords in Reading upgraded their property’s insulation and lighting, leading to a significant increase in enquiries and a faster let at a premium rent.
Applicants Registered Per Prospect Listing
A 15.85% reduction in applicants per listing highlights increased competition, with tenants having more options due to higher stock levels. To stand out, properties must be marketed effectively with high-quality photography, virtual tours, and engaging descriptions. Flexible rental terms and well-maintained properties can further attract tenants. Properties near new transport developments have seen increased tenant demand due to improved connectivity.
Total To Let Properties Listed
An 11.8% increase in rental properties reflects healthy market activity, with landlords bringing more properties to market to meet demand.
While increased stock creates competition, it also shows a robust market. Landlords who focus on compliance with regulations and maintaining property standards will stay ahead.
Another example, a landlord in Wokingham improved their property’s EPC rating to meet new standards, helping them achieve a 10% rent premium.
Total Lets Agreed
The 5.2% increase in lets agreed highlights continued demand for quality rental properties despite increased competition. Tenants prioritise homes offering energy efficiency, modern amenities, and good transport links. Meeting these needs ensures faster lets and reduced void periods.
In Bracknell, regeneration projects and proximity to employment hubs like Reading and London are driving tenant interest.
Total To Let Properties Listed
A 7.02% increase in rents reflects strong demand for high-quality rental homes, even in a competitive market.
This upward trend reinforces the value of retaining properties for long-term investment. Ensuring properties meet tenant expectations and market demands will maximize returns.
Total For Sale Properties Listed
The number of properties listed for sale increased by 6.2% in 2024 compared to 2023. This rise reflects the dynamic activity in the property market, where some property owners, including landlords, may have explored selling due to factors such as market confidence, shifting financial goals, or regulatory changes.
This trend emphasises the need for landlords to regularly review their property portfolio and financial strategy. While selling may appeal to some, retaining properties for long-term rental income often provides consistent returns and capital growth. Understanding current market conditions—such as rental demand, average rents, and regulatory changes—can help landlords make well-informed decisions aligned with their goals.
Total Sale Agreed Properties
The 16% increase in sales agreed indicates a strong and active property market, where well-maintained homes continue to attract buyers. This growth reflects buyer confidence and sustained interest in quality properties, driven by favourable market conditions.
For landlords, this data highlights the importance of aligning property decisions with their long-term financial goals. While some may explore selling, retaining properties often provides consistent rental income and the potential for capital appreciation over time. Regularly reviewing your portfolio and understanding how current market trends impact rental yields and property values will help you make informed decisions that maximize returns.
Average Exchange Price Achieved
The 5.31% increase in average exchange prices demonstrates the resilience of the property market, with steady growth in property values despite broader economic challenges. This trend underscores the strength of the property sector as a stable and appreciating asset class.
Retaining properties offers two key financial benefits: regular rental income and long-term capital appreciation. As property values rise, landlords not only benefit from steady cash flow but also see the value of their investments grow over time. For long-term investors, maintaining a presence in the rental market allows them to leverage these dual advantages, positioning their portfolios to perform well in a dynamic market.
Compliance and Regulation
Further to all of the above, The Renters’ Reform Bill is expected to introduce significant changes in 2025, including:
- Abolition of Section 21 notices.
- Minimum property standards.
- Enhanced tenant rights.
How We’re Supporting Landlords:
- Webinars: Regular updates on legislative developments.
- Service Calls: One-on-one advice tailored to your needs.
- Newsletters: Educational content to help you prepare for compliance requirements.
Predictions for 2025
- Tenant Demand is expected to stabilise, with modest rent growth driven by ongoing supply constraints and tenant preferences for energy efficiency and modern amenities.
- Property values will continue to rise steadily, reinforcing the benefits of retaining rental properties for both income and long-term capital growth creating wealth.
- Regulatory changes will require landlords to stay proactive, ensuring properties meet standards and tenants remain satisfied.
Why Choose Prospect Lettings?
- 99% Rent Collection Success: Your income is protected.
- Dispute Management Expertise: Less than 3% of tenancies result in disputes.
- 7% Rent Growth: Average increases for re-let properties in 2024.
- Rigorous Tenant Screening: 10 applicants per property ensure quality tenants.
- 98.68% Retention Rate: Exceptional service keeps clients with us.
Contact us today to:
- Book a Portfolio Review: Explore tailored strategies for your properties.
- Schedule a Compliance Consultation: Stay ahead of legislative changes.
- Upgrade to Full Management Services: Maximise your returns and minimise stress.
We’re here to help you position your portfolio for success in 2025.
Contact us todayConclusion
The property market in 2024 showcased a dynamic environment, with both challenges and opportunities for landlords. By focusing on compliance, tenant retention, and long-term portfolio strategy, landlords can navigate these changes effectively and maximise returns.
Whether your goals are to increase rental yields, reduce void periods, or future-proof your properties, staying informed and proactive is key. At Prospect, we’re dedicated to supporting you every step of the way. Let’s make 2025 your most successful year yet.
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