Residential Rental Market Review

Rental occupancy rates throughout autumn continued at full levels, and we expect to see no change as winter takes hold. Staff are focusing on reviewing rents for all properties under management – if increases are justified and viable they will be put into effect.

The average rent increases across the portfolio have been in excess of the Consumer Price Index (CPI); these increases have been possible in all segments (with the exception of the studio market).

With 240 new studios released to the market last year, the studio segment continues to be a challenge. The new studios came on to the market at the same time CTC Aviation opened its accommodation campus, exiting about 200 studios (which the air-pilot students had occupied to that point).

Property managers have therefore been working extremely hard to attract tenants – and this will be an ongoing challenge over the short to medium term.

The rest of the market continues to experience consistent demand, with modern properties in the north-east being scarce and, therefore, attracting premium rents. It is noticeable that well-maintained properties tend to attract better-quality, higher-paying, tenants. As winter bites tenants seemingly become more discerning.

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