Rents Boom Whilst Sales Falter

Our latest quarterly report is now available to download here. Whilst we have seen a strong sales and rental market now for the last 12-18 months, it is quite rare for both sectors of the market to perform so well for so long and at the same time. Hence it was hardly surprising that this would not last even if the cause of the issue was somewhat unexpected (surging inflation, disastrous mini budget etc).

The rental market continues to surge with rents rising at a strong and steady rate with no immediate sign that this growth is starting to slow. A slow down in supply and a massive increase in demand as the city has recovered strongly over the last 2 years has been the main driver of the growth. It has also been helped no doubt by the challenges of the sales market since the mini budget in September 2022 as many first-time buyers have put off the dreams of home ownership amidst rapidly rising interest/mortgage rates.

The sales market hit a brick wall towards the end of September 2022 after the disastrous mini budget. The initial impact was a loss of ongoing sales as buyers balked at the huge spike in mortgage rates and the serious concern as to the likely direction of future house prices. Whilst the market has settled down since that point and been helped by mortgage rates falling back a bit the ongoing uncertainty is continuing to impact the market. Both buyers and sellers are sitting on their handswaiting to see what early 2023 has in store for the property market.