The 2024 Rental Market in Horsham: Trends, Challenges, and Predictions for 2025

The Horsham rental market in 2024 has seen notable shifts, influenced by national trends and specific local factors. As the housing sector adapts to the ongoing uncertainty surrounding property regulations, several key changes have reshaped the landscape. The introduction of the Renters’ Rights Bill brings about major reforms, which will have significant implications for both tenants and landlords in the region.

2024 Rental Market Trends in Horsham

Rising Rental Prices

In Horsham, average rental prices have seen a steady increase through 2024. According to recent data, the average monthly rent for a two-bedroom house is approximately £1,400, with some areas experiencing even higher rates (a specific valuation is required to know your properties worth). This reflects a wider trend across the UK, where rental prices have been climbing due to the scarcity of rental properties and heightened demand. Larger family homes are particularly affected, with prices rising as supply struggles to keep up.

Property Types on the Rise

Smaller properties, particularly flats, are anticipated to see continued demand, especially as a result of new legislation allowing for easier conversion of commercial properties into residential units. This creates an opportunity for investors and landlords in Horsham to consider flats and smaller units as high-demand rental options. This trend aligns with the government's ongoing discussions about stimulating housing supply, particularly in suburban and semi-rural areas, where Horsham lies.

Key Impact of the Renters’ Rights Bill

The Renters’ Rights Bill is poised to make substantial changes to the rental market. One of the most significant proposals is the abolition of section 21 ‘no-fault’ evictions, which will provide tenants with greater security. While this is viewed as a positive for tenants, there is concern that it will make landlords more cautious, especially in areas like Horsham where rental supply is already tight. With fewer landlords willing to take on the risks associated with renting, rents may continue to rise as a consequence of diminished supply.

Another important aspect is the government's likely move to ban upfront rent payments—a practice often used by tenants with poor credit histories, who may fail referencing or overseas students to secure properties. This could be particularly problematic in Horsham, where a significant portion of the rental market includes students and individuals from overseas. These groups often struggle to provide the references and proof of income required by landlords but have been able to secure rental agreements by paying several months in advance. If this option is restricted, many of these tenants may be locked out of the market, exacerbating the issue of rental demand and potentially leaving landlords with a higher risk of tenant defaults.

Predictions for 2025

Looking ahead to 2025, the Horsham rental market is expected to continue evolving. The introduction of more stringent tenant protections will likely lead to an increase in rental prices, as landlords factor in the added risks and costs associated with the new regulations. Larger family homes may face higher rent increases as demand outpaces supply, while smaller properties, particularly flats, may see an increase in availability due to conversion opportunities provided by the new stamp duty loophole for commercial properties.

As the Renters’ Rights Bill progresses, the potential to challenge rent increases in the First-Tier Tribunal could also affect pricing in the short term, as tenants gain more bargaining power. However, in the longer term, it is likely that the government’s goal of raising housing standards will push up rent prices further, as landlords face increased compliance costs, particularly in areas like Horsham, where the private rental sector is under pressure.

Conclusion

In summary, 2024 has been a year of transformation for the Horsham rental market. With increased rental prices, a growing demand for smaller properties, and the looming effects of the Renters’ Rights Bill, both tenants and landlords in the area face uncertain but potentially impactful changes in the near future. Tenants, particularly those with poor credit or international backgrounds, may find it more difficult to access properties without the ability to pay upfront, while landlords will need to adjust to new regulations that could lead to higher operational costs and potential rent increases.