The letting market wakes up as summer arrives
Our Q1 report explained how the letting market slowed dramatically in January and deal volumes have been lower in 2024. It took until June for demand to return, driven particularly by overseas students seeking high quality apartments. The team at Haslams negotiated 94 new lets in June even though the wider market produced 10% fewer deals vs the year before (399 new lets in wider Reading vs 442 in 2023).
Annual rent increases are still above 6% for new lets and for renewal tenancies, indicating the resilience and strength of the Reading economy and the long-term shortage of rental property, something which the Labour manifesto fails to address in detail. We expect the Rent Reform Bill to return in some form as the Government looks to shift some of the power back to tenants. This is nothing for landlords to be fearful of as long as policy makers ensure the process around gaining possession is fair and reasonable.
View our Residential Sales report here.
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Oliver Chambers Head of Lettings Sales |
Rental Demand
applicants registered
enquiries
rental increase YoY
rental increase on renewal
lets agreed
(Haslams internal data & Rightmove Q2 2024)
Rental Supply
properties to rent
vs last year
(Rightmove data for Reading area Apr-Jun 2024)
Gross Yields
1 bed apartment in central Reading
2 bed house in Lower Earley
2 bed apartment in Caversham with parking
(Haslams Price Index Q2 2024 vs Q2 2023)
Haslams Tenants
Average salary
(Haslams internal data 06/24)
| Age Breakdown | |
|---|---|
| Under 21 | 6% |
| 21-30 | 40% |
| 31-40 | 32% |
| 41-50 | 11% |
| 51-60 | 8% |
| 61+ | 3% |
(Goodlord data Q1 2024)
Haslams Portfolio
(Haslams internal data Q2 2024)
| Void rate | 0.5% |
| Rent arrears | 1% |
| Tenancy renewal rate | 65% |
Investment opportunities
Kings Road, RG1
£180,000 7.3% yield
1 bed, 1 bath apartment
Walking distance to town centre
View property >
Kensington Road, RG30
£435,000 6% yield
Two x 2 bed apartments
For sale with tenants in situ
View property >
This does not constitute financial advice and Haslams may be acting for the owners of properties mentioned.
Download Haslams Q2 2024 Lettings Report as a PDF
