Reports shared this week indicate that historic housing market trends show that a decline in property sales also leads to an increase in private rentals. This means that as the property market continues to struggle the rental market is poised to boom! The signs show that it is more common for high-value properties to be let as the owners are able to financially see through the economic downturns by letting their properties.
It seems that the rental market can fight off most economic situations. For example, the Covid market downturn saw a rise in the amount of privately rented properties, this was the first increase since 2016.
Market analysts have found that sales volumes increase by 4.7% per year when the market is unaffected by economic downturns, whilst the private rental market increases by an average of 4.1% annually.
During periods of economic instability, sales volumes tend to fall, while the rental market continues to grow at a higher rate. The figures have shown that sales fall by an average of 22.8% per year during difficult times, whereas the rental market continues to grow at a rate of 5.6% per year regardless.
Interesting Fact
Market valuation appraisals are a good leading indicator of supply. For properties valued between £1,000 and £5,000 per week, the number was 17% higher in October than it was in January. For sub-£1,000 properties, there was a 24% decline.
About Rockett Home Rentals
Rockett Home Rentals specialises in letting high-end properties to professionals in Newcastle under Lyme and Stoke-on-Trent areas. If you have a property that you can let - we have the tenants waiting for you. Contact us
For further reading see the links below:
Rental market boom on the horizon as homebuyers struggle, says City fund boss (msn.com)
Early signs that more high value rental properties will become available (Property Industry Eye)