Thursday, 26 June 2025

Huddersfield Rental Property Market: 5-Year Overview & What Landlords Should Expect in 2025

 

Huddersfield Rental Property Market: 5-Year Overview & What Landlords Should Expect in 2025

Over the past five years, Huddersfield’s rental market has undergone a major transformation — and if you’re a landlord, these trends matter more than ever.

From 2020 to 2025, the average monthly rent in Huddersfield surged from £585 to £805 — a 37% increase. That’s even higher than the 35% national rise over the same period (from £1,331 to £1,803). Regionally, rents in Yorkshire and the Humber climbed 32%, from £757 to £1,003.

So, how does this affect you as a landlord? Let’s take a closer look.


📈 Rents Rising, But Caution Creeping In

Despite the strong upward trend, not all landlords are having it their way. As affordability tightens, some have had to cut asking rents — with 24% of listings across the UK undergoing price adjustments in 2025 alone. Still, Huddersfield tenants are paying substantially more than they were five years ago, even as the pace of increases slows.


🏘 Supply Hasn't Kept Up

While rents have gone up, supply has edged down. Here’s the average number of new rental listings per month in Huddersfield over the last six years:

  • 2020: 255
  • 2021: 222
  • 2022: 235
  • 2023: 252
  • 2024: 231
  • 2025: 230

And while we’re back to seasonal peaks in spring and early autumn — especially October, thanks to the student market — the pandemic-era disruption still echoes in lower year-round volumes.

Nationally, rental availability remains over 25% below pre-Covid levels, keeping the pressure on.


👀 What’s Happening Right Now in Huddersfield?

Agents across town are still seeing strong demand, even if the frenzy of 2022–23 has eased. Good-quality listings are attracting multiple enquiries, thanks in part to Huddersfield's relative affordability compared to nearby cities.

Vacancy rates remain low. And while supply is inching up, the gap between supply and demand remains significant.

Unless that changes, rents are likely to keep rising — albeit more gradually. My forecast for Huddersfield? Another 3% to 4% growth in 2025.


🔍 2025 Outlook: The Pressures and Possibilities for Landlords

Here’s what Huddersfield landlords need to watch in the year ahead — both the challenges and the opportunities.


⚠️ The Key Challenges

1. Big Regulatory Changes Are Coming
The Renters’ Reform Bill could be a game-changer. It’s set to scrap Section 21 “no-fault” evictions and strengthen tenant protections — a major concern for landlords dealing with difficult tenancies.

Plus, changes to EPC regulations could force landlords to invest heavily in older properties to meet energy standards.

2. Finance and Maintenance Costs Are Up
Buy-to-let mortgage rates have jumped from 2–3% post-pandemic to 5%+ by 2024. While the Bank of England’s recent rate drop to 4.25% offers slight relief, inflation has pushed maintenance costs higher. Landlords now spend around 20% of rental income on upkeep.

3. Tax Is Squeezing Yields
The removal of mortgage interest relief, tougher Capital Gains Tax rules, and the looming Making Tax Digital rollout are all eating into profits — especially for higher-rate taxpayers.

In fact, 15.6% of homes listed for sale in Q1 2025 were previously rented properties — up from 9.8% a year earlier — a sign that some landlords are deciding it's no longer worth it.

4. Tenant Expectations Are Rising
Today’s renters want more: better insulation, fast broadband, modern kitchens, and bathrooms. And with the cost-of-living squeeze, arrears remain a risk — especially for landlords managing tenancies themselves.


🌟 The Opportunities

1. Demand Remains Strong
Huddersfield continues to offer good value for money, attracting young professionals, families, and students. Well-maintained homes are letting quickly with minimal voids.

2. Yields Are Better Than They’ve Been in Years
With rents at historic highs, gross yields are strong, especially for landlords with little or no mortgage debt. Even those with mortgages are faring well if they've kept borrowing under control.

3. Less Competition
As some landlords exit the market, those who remain are seeing less competition and better returns. There are even portfolio acquisition opportunities for landlords looking to grow — often with tenants already in place. (If you’re interested, I’m happy to consult our landlord database to find available properties.)


🧠 Final Thoughts for Huddersfield Landlords

Huddersfield’s rental market continues to evolve — and while it’s not without challenges, there are still excellent opportunities for informed and proactive landlords.

If you're managing your own properties or using another letting agent and want to talk strategy — from pricing to compliance to tenant retention — I’d love to help.

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