Rents fall in some areas but Connells enjoys lettings growth

Lettings agency giant Connells says the private rental sector performed strongly in the second quarter of 2024 despite worries over future legislation from the new government.

The quarter saw a 6% increase in new instructions and the number of instructions in June specifically was the highest since July 2020.

Across Connells Group, tenant demand eased slightly by 2%. However, the increased stock levels coupled with steady tenant demand resulted in the number of tenancies agreed in Q2 2024 increasing by 3% from the same period of 2023.

The average agreed rent across the UK as a whole was £1,464 pcm, 6% above Q2 2023. As stock levels continued to grow and pressure from tenant demand eased, the overall growth rate of prices slowed year on year.

Regionally, the South East and the Midlands both saw a decline in rental values in June, whereas in Scotland and northern England, and in the East, rental values rose in the same month.

A spokesperson comments: “We’re buoyed by the activity we’ve seen during the second quarter of this year which demonstrates that, despite some uncertainty surrounding policies in the sector, confidence from investors is on the increase. We’re pleased to see more instructions, more tenancies agreed and more landlords staying with us, contributing to an overall positive outlook as we look towards the latter half of the year.  

“The UK private rented sector is offering solid returns for investors, and our recent data supports this.  We continue to see corporate investors and institutional capital enter the market, generally viewing it as part of a long term strategy which will generate stable returns.  As the largest property services group in the UK we are perfectly placed to assist investors at every stage of the asset lifecycle.”