JLL Tenants Survey 2023

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Our 2023 Tenant Survey Report shines a spotlight on&nbsp;what tenants are looking for in a home - and how that&nbsp;could change in the future.

Our 2023 Tenant Survey Report shines a spotlight on what tenants are looking for in a home - and how that could change in the future.

Our 2023 Tenant Survey Report shines a spotlight on&nbsp;what tenants are looking for in a home - and how that&nbsp;could change in the future.<div><span style="color:#333333;"><br /></span></div>

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<p><strong></strong>The rental market across the Big Six continues to experience stock scarcity. Although the disparity between supply and demand eased at the year end. This meant growth fell back from the double-digit highs recorded earlier 2023, with rents
    across new developments in the Big Six rising 8.8% in the year to December 2023. </p><p>Despite higher mortgage rates, demand for homes across the Big Six remained robust in the second half of 2023. But higher debt and living costs meant budgets were squeezed, resulting in annual growth in prices slowing to 2.8% in the year to December.
    Edinburgh and Glasgow recorded the highest annual growth of the Big Six, at more than double that of the other four English cities.</p><p>In most cities the prime new build market has outperformed, reflecting a flight to quality and continued appetite for highly amenitised, high spec new homes in central locations.</p><p>In the build-to-rent sector Birmingham and Manchester still dominate, with the highest number of operational units. But Scotland&rsquo;s major cities are expected to see the most significant proportional increase in stock. Edinburgh has the largest pipeline
    relative to operational stock at 4.9x, followed closely by Glasgow at 4.8x.</p><p><a href="https://res.cloudinary.com/global-cms-assets-np/image/upload/v1709041507/resi/gb/Articles/PDFs/JLL_Residential_Big_Six_Report_Winter_23_24.pdf" target="_blank"><button class="Button primary" style="text-align:center;">Click here to read more</button></a></p>

Big Six Residential Development Report – Winter 2023/2024

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The JLL Big Six Residential Development Report tracks the new homes sales, lettings and build-to-rent markets in Birmingham, Bristol, Edinburgh, Glasgow, Leeds, and Manchester.

<p>The JLL Big Six Residential Development Report tracks the new homes sales, lettings and build-to-rent markets in Birmingham, Bristol, Edinburgh, Glasgow, Leeds, and Manchester.</p>

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<p>Mortgage rates in the UK are constantly changing, it can be hard to know where to start and what to do. Rising interest rates and inflation is making it harder to borrow money, by following this guidance you can put yourself in the best position when buying a new home.</p><ol><li>Get pre-approved for a mortgage before you start looking for homes. By doing this, you can gain an idea of how much you can borrow and therefore what homes you are able to afford.&nbsp;</li><li>Be prepared to move quickly. In the current market, particularly for new build homes, the process moves very quickly so you should come prepared beforehand so as not to lose out on the opportunity.</li><li>Be aware of changing interest rates. These play a pivotal role in the mortgage market by influencing borrowing costs and affordability.&nbsp;</li><li>Determine what type of mortgage is right to you e.g. fixed rate mortgage, and compare their rates with different brokers.&nbsp;</li><li>Stay informed on home buying schemes through our First Time Buyer Website. The government and independent homebuilders and Housing Associations are launching new and innovative solutions to help First Time Buyers onto the property ladder.</li><li>JLL can also help connect you to our in-house expert mortgage adviser, offering fast and reliable help.</li></ol><p>&nbsp;</p><div><p><strong><em>Key Terminology:&nbsp;</em></strong></p><p></p></div><div><p><span style="text-decoration:underline;">What is a mortgage?</span></p><p>A loan used to purchase or maintain a property, secured against the property itself. It is an agreement between the purchaser and the lender, typically a bank.</p></div><div><span style="text-decoration:underline;"><br /></span></div><div><p><span style="text-decoration:underline;">What is an interest rate?</span></p><p>The amount you are charged for borrowing money, usually a percentage of the total amount of the loan. An interest rate that a lender charges on the mortgage amount you borrow is known as a mortgage rate.</p></div>

Beginners Guide to Navigating Mortgage and Interest Rates

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Mortgage rates in the UK are constantly changing, it can be hard to know where to start and what to do. Rising interest rates and inflation is making it harder to borrow money, by following this guidance you can put yourself in the best position when buying a new home.

Mortgage rates in the UK are constantly changing, it can be hard to know where to start and what to do. 

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<p><a href="https://res.cloudinary.com/global-cms-assets-np/image/upload/v1692190699/resi/gb/Articles/PDFs/Big_6_Report.pdf" target="_blank"><button class="Button primary" style="text-align:center;">Download full report</button></a></p><p><strong></strong>This report incorporates data from the JLL UK Cities index, comparing changes in prices and rents across mainstream and prime developments in each city.</p><p>There have been some obvious challenges facing the housing market over the past year. Higher rates, tightening household budgets and weaker overall market sentiment are all impacting prices and activity. Although we have seen the rate of growth in prices
    slow, city centre markets are proving resilient, supported by strong demand from students and young professionals. </p><p>In the rental market, severe lack of available rental supply is driving rents. The Big Six cities recorded average annual rental growth of 14.3% in the year to June 2023.</p><p>The increases in rents across the Big Six clearly demonstrates not only the demand for city centre living but also the need for more homes. This is not exclusive to the rental market, with a requirement for more homes of all tenures needed to address
    demand.</p><p><a href="https://res.cloudinary.com/global-cms-assets-np/image/upload/v1692190699/resi/gb/Articles/PDFs/Big_6_Report.pdf" target="_blank"><button class="Button primary" style="text-align:center;">Download full report</button></a></p>

Big Six Residential Development Report, Summer 2023

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<strong>The JLL Big Six Residential Report compares activity, prices, and rents across six UK cities outside London: Birmingham, Bristol, Edinburgh, Glasgow, Leeds and Manchester.</strong>

The JLL Big Six Residential Report compares activity, prices, and rents across six UK cities outside London: Birmingham, Bristol, Edinburgh, Glasgow, Leeds and Manchester.

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<div class="row">
    <h2><strong style="background-color:initial;font-size:inherit;text-align:inherit;text-transform:inherit;word-spacing:normal;caret-color:auto;white-space:inherit;">Q2 2023 Sales Index</strong><br /></h2>
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<p><strong></strong>The JLL Prime Central London Index saw prices fall for the third consecutive quarter.&nbsp; The Q2 2023 index recorded a quarterly fall of 2.1%, with prices 5.9% down compared with the same period in 2022. Prices are now 6.8% lower than
    they were when prices peaked in the third quarter last year.&nbsp; </p>
<p>The upper echelons of London&rsquo;s prime market are proving more resilient. With prices down 0.8% in the 12 months to June 2023 compared with a 6.7% fall in homes priced at under &pound;2 million (likely to be most impacted by changes in interest rates).
</p>
<p>Despite sentiment impacting prices we saw deals agreed (exchanges) increase in an admittedly slow Q1 this quarter, with a 28% increase in sales in Q2 2023.&nbsp; With volumes on par with Q2 2022 (down -1.2%). </p>
<p>Stock levels rose in Q2, with 8.3% more properties on the market than in Q2 2022 and 9.7% more than at the end of the first quarter this year. Stock on the market is now at the highest level since the end of Q2 2020. </p>
<h2><strong>Q2 2023 Lettings Index</strong></h2>
<p><strong></strong>The uncertainty which is hampering activity in the sales market often has the opposite effect on lettings. With households more likely to stay in rented for longer or choosing to rent when delaying their decision to buy. Just over half
    (51%) of JLL deals agreed in Q2 2023 were renewals, up from 45% a year ago and 24% in Q2 2021. This was the highest rate of renewal since Q2 2020. </p>
<p>The number of new lets rose this quarter compared with last, up 13%.&nbsp; But the second quarter is usually more active than the first. Comparing new lets agreed (excluding renewals) in the second quarter this year with Q2 last year showing there were
    18% fewer deals agreed, with the number agreed down 35% compared with the Q2 five-year average.</p>
<p>This quarter the JLL Prime Central London Index saw rents rise by 1.9%, with rents 5.4% higher than they were at the same point a year ago. Small flats (1 and 2 beds) saw this highest annual increase in rents at 6.7% whereas more expensive properties
    (&pound;3,000 per week or more) saw a more modest 2.9% annual increase. </p>
<p>Rents are now 26% higher for one-bedroom flats (which have seen the highest growth) than they were three years ago at the end of Q2 2020. With the JLL Prime Central London Rental Index 19.2% higher overall over the last three years.</p>
<p>For prospective tenants having to contend with low stock levels there appears to be some respite as we move into the summer. Stock levels are starting to increase, albeit off a low base. With the number of rental properties listed to let at the end of
    Q2 2023 up 13.8% on the same point in 2022. But volumes remain 55% down on levels we were seeing pre-pandemic in Q2 2019. </p>
<h2>All Source: JLL/ LonRes</h2>
<p><strong>Our JLL Prime Central London Index is based on a &lsquo;basket&rsquo; of properties, valued by JLL at the end of each quarter. </strong></p>
<p><strong>Director of UK Residential Research at JLL, Marcus Dixon, explains: </strong></p>
<p><em>&ldquo;The implications of stubborn inflation on the UK mortgage market are hampering activity in prime central London. While fewer buyers are heavily indebted - almost half buy cash - uncertainty surrounding the short-term outlook is impacting prices. </em><em></em></p>
<p><em>&ldquo;The lettings market remains competitive, stock levels have improved on their 2022 lows but there are still more prospective tenants than there are properties. This has resulted in further rent increases this quarter, with rents almost 20% higher than they were in 2020.</em><em></em></p>
<p><em>&ldquo;The lower end of the rental market continues to see a steady stream of (formerly) prospective buyers moving across into lettings. With smaller properties, mainly one- and two-bedroom flats, recording the highest annual increase in rents, while prices for similar properties are seeing more significant falls than homes in more expensive price bands.&rdquo;</em></p>

JLL – Prime Central London (PCL) Index – Q2 2023

The recent rise in interest rates does not impact all sectors of the housing market equally.&nbsp; With more than half of all owner-occupied homes having no mortgage secured against them and cash purchase, particularly in higher value prime markets, making up a significant proportion of homes sold.

The recent rise in interest rates does not impact all sectors of the housing market equally.

Prime Central London (PCL) Index – Q2 2023

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<p>We endeavor to keep your personal information secure with appropriate level of security and keep for as long as we need it for legitimate business or legal reasons. We will then delete it safely and securely. For more information about how JLL processes your personal data, please view our <a href="https://www.jll.co.uk/en/privacy-statement" target="_blank">privacy statement</a>.</p>

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<p>PRIVACY NOTICE</p>
<p>Jones Lang LaSalle (JLL), together with its subsidiaries and affiliates, is a leading global provider of real estate and investment management services. We take our responsibility to protect the personal information provided to us seriously.</p>
<p>Generally the personal information we collect from you are for the purposes of dealing with your enquiry.</p>
<p>We endeavor to keep your personal information secure with appropriate level of security and keep for as long as we need it for legitimate business or legal reasons. We will then delete it safely and securely. For more information about how JLL processes your personal data, please view our&nbsp;<a href="https://www.jll.co.uk/en/privacy-statement" target="_blank">privacy statement</a>.</p>

JLL Tenants Survey 2023

Related articles

Big Six Residential Development Report – Winter 2023/2024

Beginners Guide to Navigating Mortgage and Interest Rates

Big Six Residential Development Report, Summer 2023

JLL – Prime Central London (PCL) Index – Q2 2023