Price growth will start to slow but demand for rental property in the area remains strong, says Louise Nicholson, head of lettings for Savills Cotswolds
Tenants looking to rent in the Cotswolds have faced intense competition over the last couple of years. The ‘race for space’ saw a new wave of tenants enter the already busy rental market, which in turn caused a shortage of available property. It is this considerable gap in supply and demand that has been the primary driver of rental growth.
Indeed, rental values have increased significantly since the start of the pandemic – and continued to rise by an average of two per cent during the final quarter of 2021. This leaves annual rental growth in the Cotswolds at just over eight per cent. For larger properties, those with three or four bedrooms, growth is even higher at nearly ten per cent.
A shortage of rental property is likely to continue to support regional values over the first half of this year. However, as demand eases back and stock levels begin to normalise, we expect growth to slow during the second half of the year.
This said, the Cotswolds is uniquely positioned to take advantage of demand for space and rural living for the foreseeable future. So, while the ‘race for space’ may not be quite as urgent as it has been, many people have settled into a hybrid working pattern that allows them to live at least part time in the country. The Cotswolds is one of the most naturally beautiful parts of the country and offers good connectivity to London and other regional commuter hotspots.
Following the strong rent rises since the start of the pandemic we expect growth to be more subdued over the coming years. Our forecast anticipates total rental growth of just under six per cent over the five-year period to 2026.
As the rental market continues to be so fast paced, both tenants and landlords will need to be responsive to changes in conditions over the coming months.
New beginnings in the Cotswolds
Creating a new life in a new area is a big step that needs considering on multiple levels – socially; career, family and school-wise, plus having the confidence to make the jump. There has been a massive social change in the last two years. The Cotswolds has embraced this wholeheartedly. It has, however, created significant pressure on the property market, pushing values to unprecedented levels.
The balance between the number of buyers against vendors fuels the fire – many would-be vendors are too nervous to go to the market as they see little they can buy; a particular issue with the older generation looking to downsize. Meanwhile, affordability with cash funds drives the market to quick sales and best bids.
There is no quick answer, but help is on hand to give objective advice, guidance and opportunities most applicants miss out on. As buying agents, the Cotswolds team at Recoco Property Search – Adam Phelps and Suzanne Welch – are able to give an objective route through an emotional minefield.
Local contacts, knowledge and experience backed by Recoco founder, Cotswolds-born Nigel Bishop, ensures there is a full understanding of the implications of creating a new life in the region. Understanding ambitions is key to advising on both what and where to buy a home to fit the family dynamics.
