One leading London based firm has said there has been a 73% increase in the number of new prospective tenants registering with them since the start of autumn 2019. When you consider the 2019 rental market was a strong year, this is a significant statement about how the market is performing now.
This is a significant time for landlords, and if you are looking to engage the market, we are here to assist you at David Harris & Co.
Gary Hall is a known name in the London lettings sector, and he has spoken about the market. Gary has said; “It’s turned into a landlord’s market in recent weeks and that has happened very quickly. Supply is tight in some areas and demand has gone through the roof.”
Gary Hall also said; “In some areas, lettings properties are coming onto and off the market on the same day. The competition is so fierce that some prospective tenants are taking a property based on a single virtual viewing from their desk at work.”
Significant demand for rental property across country
The situation in London appears to be repeated across the country, at least according to information provided by Zoopla.
The “key takeaways” shared by Zoopla are as follows:
1. UK rents, excluding London, are increasing at their highest rate for over a decade.
2. Monthly rents outside London are averaging £790, up from £752 a year ago. It means renters are paying an average of £456 more a year.
3. Competition for rental homes is fierce at a national level, with properties letting almost a week faster than last year.
With people heading back to city centre living, no doubt influenced by businesses returning, rents outside of the capital are increasing at their fastest rate since 2008.
According to the most recent Zoopla Rental Market Report:
· The typical price of renting property in the UK, but excluding London, stands at £790
· Over a year, this sees tenants pay an additional £456 in rent
Gráinne Gilmore is the head of research at Zoopla, and she said: “There has been a sharp rise in demand for rental properties in recent months, especially in central city markets, signalling the return of city life as offices and other leisure and cultural venues continue to open up more fully."”
Kate Eales, a known name in the property and rental sector said; “Rents are recording healthy growth in cities, but in the most desirable areas, there’s evidence of growth up to 25%. We recently let a home in the Cotswolds for £3,750 a month when it was previously let out at £2,200 and another was let for £5,500, up from £4,100.”
Gráinne Gilmore also said; “As ever, much will be dependent on the extent to which the current rules around Covid-19 continue as they are. But given no deviation from the current landscape, the demand for rental property, coupled with lower levels of supply, will continue to put upward pressure on rents. In London, this will translate into rental growth returning to positive territory late 2021 or early 2022.”
If you have any questions about the housing market, or you need assistance, please contact David Harris & Co today. Call us on 0208 346 9122.
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