As we start to emerge from, hopefully the last lockdown, we are presented with a completely different lettings landscape. Renting property it seems has never been so popular.
The latest research for Rental Confidence highlights a significant, but not unexpected shift in the industry.
Current tenants are switching properties
Almost 70% of the agents surveyed about their experiences during the pandemic reported an increase in demand for rented homes. Enforced working from home for periods throughout the last 12 months have led tenants to re-evaluate their current living spaces and the desire to switch to a larger property or one with outside space that they would perhaps not have considered previously.
The prospect of not returning to offices for the foreseeable future, if at all, have also allowed city centre tenants to consider a more rural lifestyle. The freedom extended by no longer having to commute has driven demand amongst properties in well connected towns and countryside locations where rent money goes further than it did in their previous city centre areas.
These two factors have significantly increased demand in certain locations, including ours here in Furness and the South Lakes, leading 57% of the agents surveyed expecting landlords to increase rental prices for the next year.
Stamp duty holiday has increased rental demand
The housing market has not slowed down over the past year. Our own Property Department is seeing record numbers of sales that are outstripping demand, fuelled by those wanting to take advantage of the current stamp duty holiday which was extended in some form until the end of September 2021 in last month’s budget.
This opportunity to move on has prompted some to sell up and move into rented accommodation on a temporary basis until they find their dream home adding further to the demand on privately rented properties.
What does this mean for landlords?
With all this demand for rented accommodation, there is a lot of good news for landlords. From the survey most tenants (55%) expected to still be renting in five years’ time, with the vast majority of landlords (62%) still expecting to be residential landlords over the same period. These figures offer a great foundation for the future for both landlords and tenants with the features of outside and office space key to secure for landlords wishing to extend their portfolios.
As a lettings agency within an estate agency we can advise on potential investment opportunities that may fit your brief as soon as they come onto the market with Poole Townsend. We can also advise on valuations, work required and potential rental income for properties listed with other estate agents before you proceed with an offer.
Letting property doesn’t need to be a headache, talk to us about hassle-free property management.