Estate agency Connells Group has announced a 9% year-on-year uptick in lettings instructions in Q4 2023, with the best performing December in five years.
December saw a 30% increase in instructions on a four-year average.
According to Connells, which manages over 150,000 tenancies, instruction growth has also seen a rise in available stock; December 2023 was up 21% year-on-year.
This sparked a 6% year-on-year increase in the number of tenancies agreed in Q4 2023.
In Scotland and the North of England, average agreed rents reached their highest for the year in December.
While the average UK rent in Q4 2023 was up 8% to £1,116, the average monthly rent across the entire year grew by 11%.
However, as stock levels continue to increase and pressure from tenant demand eases slightly, Connells believes the rate at which prices are increasing could start to decelerate.
Skipton Group, which encompasses Connells Group, revealed that 2023 saw no significant signs of landlords exiting the market; Connells is re-letting over 77% of properties at the end of their tenancies.
The average tenancy length in 2023 stood at 30 months.
At the end of last year, the number of rental properties in arrears represented just 0.9% of tenancies managed.
“The lettings market remains active and, while pressure began to ease with a 2% slowdown in tenant demand, this was accompanied by a marked 9% uplift in new instructions when compared to Q4 2022, the year ending with the best December performance for new instructions for five years,” said David Plumtree, chief executive of estate agency at Connells.
“This increase in instructions resulted in the number of properties available for rent at the end of December 2023 being 21% ahead of December 2022.”
