Local rental market booming

High demand for residential properties to rent in Montgomeryshire and bordering counties in England and Wales has been reported by a leading regional estate agent.

Halls, which has nine offices across Shropshire, Mid Wales and Worcestershire, says many rental properties are let within a week of being marketed because the demand is so strong.

The company is responding to the demand by offering an exclusive spring deal for landlords who switch to Halls’ fully managed lettings service. The offer includes a fee-free switch from the landlord’s current letting agent and the first three months’ commission completely free.

Sean Edwards, an associate director of Halls, says the demand is particularly acute in the Welshpool area, where there is shortage of rental properties due to housing rules that have impacted landlords.

The Welsh Government introduced the new rules in December 2022, requiring landlords to replace tenancy agreements in Wales with occupation contracts. Landlords must give tenants six months’ notice to end a contract.

Having spoken to his colleagues in other Halls offices, he says a uniform picture has emerged of a substantial imbalance in the supply and demand of rental properties.

As a result of this ever-increasing demand, rental prices are rising with average monthly rent ranging from £650-£700 for two bedroomed properties, £750 to £800 for three bedrooms and £900 to £1,000 for four bedrooms.

More unique properties can cost up to £3,250 a month, as was the case when Sean recently let The Old Laundry,the former servants’ quarters at Hardwick Hall, a prominent 18th century country residence near Ellesmere.

“Across the business, Halls is finding strong demand for rental properties, especially in Wales where there is a severe shortage of stock,” said Sean.

“New tenancy legislation introduced by the Welsh Government, coupled with an increase in property values, has encouraged many landlords to sell their properties.

“All our offices are experiencing a severe imbalance between the number of high-quality tenants and the number of properties we have available to offer them.

“This is to such an extent that, typically, if we put a rental property on the market on a Monday, we would expect to have 10 people booked in to view within a couple of days, with three or four of them applying to become tenants by the end of the week.”

Sean encouraged owners who are considering letting their properties to contact their nearest Halls office for professional advice.