I wanted to share a quick update on what we’ve been seeing in the lettings market over the past few months.
The end of last year and the start of this one were noticeably quieter than what many landlords have been used to. December and January were slower months, and in many cases it took longer to find the right tenant. Demand is still there, but tenants are taking more time with their decisions, and the market has felt tougher compared to the fast pace of recent years.
Across key commuter towns such as Hitchin, Letchworth Garden City and Stevenage, tenant demand continues to outpace supply, particularly for well-maintained two and three-bedroom homes. However, the market is no longer forgiving. Overpriced or poorly presented properties are sitting longer, while correctly positioned homes are still securing quality tenants within the first few weeks.
Rental growth has stabilised following several years of sharp increases. While we are still seeing some upward movement, it is now more measured and property-specific. Homes that have been refurbished, are within walking distance of train stations, and fall within good school catchments are achieving the strongest returns. In contrast, stock that hasn’t been updated or is poorly marketed is facing longer void periods and more negotiation from increasingly value-conscious tenants.
Tenant demand is still strong, but household financial pressure is clearly affecting decision-making. Tenants are more conscious of value and affordability, which makes realistic pricing from the start more important than ever.
Presentation has never been more important. Properties in good condition, supported by professional photography, clear floorplans, and strong marketing, continue to let quickly. Dated or poorly presented homes, on the other hand, struggle to attract the right tenants.
As we move into spring, we expect activity to pick up again as more tenants start planning moves ahead of the summer.
Another factor many landlords are keeping an eye on is the proposed Renters’ Rights Bill. With changes expected around Section 21 and broader tenant protections, many landlords are reviewing how they manage their properties to make sure everything is structured correctly ahead of the changes.
If you’d like to talk about your property, sense-check your current rent, or simply get an idea of what demand looks like right now, feel free to reach out. I’m always happy to have a quick conversation and share what we’re seeing locally.
