9% More Harlow Homes for Sale Than 3 Years Ago...
Read MoreOver the past few years, the UK rental market has experienced significant fluctuations, with rents increasing dramatically during the Covid-19 pandemic. Between 2020 and 2022, demand far exceeded supply, driving rents to unprecedented levels. So what about the Harlow Buy-to-Let Property Market?
In the East of England for example, the average rent has risen from £1,068 per calendar month (PCM) to £1,366pcm YTD in 2024.
However, the last 12 months have seen a slight increase in the number of properties available for rent, both nationally and regionally, leading to a more balanced market. This article will explore these trends and see if the same is happening in the Harlow Buy-to-Let Property Market.
Nationally, the rental market has witnessed a notable shift in the last 12 months. During the pandemic, many factors contributed to the surge in rental prices, including the migration of people seeking more spacious living conditions and the disruption of new housing developments. As restrictions eased, the rental market gradually started to show signs of stabilisation. According to recent statistics, there has been a slight uptick in the supply of rental properties across the UK coming onto the market, which has helped to temper the rapid rise in rents.
Regionally, the East of England mirrors this national trend where 7,249 rental properties came on the market in April 2023. This increased to 8,089 rental properties in April 2024, a rise of 11.6%.
A far cry from the national double digit percentage increases in the mid to late teens only 12/18 months before.
The East of England is slightly behind this national trend in rent increases. The average for those new properties that came on the market in April 2023 was £1,282pcm. This increased to £1,349pcm for those that came on the rental market in April 2024, a rise of 5.2%.
The increased availability of rental properties has brought some relief to tenants, who had been grappling with steep rent hikes of +20% per annum for some types of properties. Despite this increase in supply, the demand for rental properties remains robust, ensuring that rental yields continue to be attractive for landlords.
In Harlow, the rental market followed a similar trajectory in the post pandemic years of 2021/2, as rents surged due to a significant imbalance between supply and demand.
Therefore, let us look at the most recent Harlow statistics to see if that pattern has followed though to us.
In this analysis, we have looked at the first four months of 2023 versus the first four months of 2024. The reason we have done this is because if we were only to look at April of each of those years for Harlow, it would be such a small sample size that the results would not be ideal.
Therefore, looking at the first four months of 2023, 393 rental properties came onto the market in the Harlow area (CM17-CM20) with an average rent of £1,308pcm.
Despite the recent market adjustments, the Harlow Buy-to-Let Property Market remains a compelling investment opportunity for several reasons:
It’s important to address the concerns of Harlow tenants who may feel burdened by the recent rent increases. While it’s true that rents have risen significantly, it’s worth noting that these increases have generally aligned with inflation rates over the medium term (since 2016). This means that, in real terms, the cost of renting has not increased disproportionately.
For tenants in Harlow, the slight increase in rental supply offers a glimmer of hope. A more balanced market could lead to more competitive rental prices and better opportunities to find suitable housing. Landlords should be mindful of maintaining good relationships with tenants, recognising the importance of fair and transparent rental practices.
Looking ahead, the Harlow buy-to-let market appears poised for continued stability and growth. Landlords should take advantage of the current market conditions to expand their portfolios. The combination of strong demand, affordable property prices, and the town’s economic prospects make Harlow a smart investment choice.
For those considering entering the buy-to-let market, now is an opportune time. The national and regional stabilisation of rental prices indicates a mature and sustainable market, reducing the risks associated with volatility. By investing in Harlow, new landlords can benefit from the town’s attractive rental yields and long-term house price growth potential.
As an agent, I like to stay informed about these trends and communicate them to everyone interested in the Harlow property market. By highlighting the town’s potential investment opportunity for landlords whilst addressing tenant concerns, we can foster a healthy and thriving rental market that benefits all parties involved.
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