In a challenging time, the demand for rental property remains robust. There is no getting away from how hard the past year has been, but in the rental market, there is a lot of feel positive about.
According to ARLA Propertymark, demand for rental property rose by 27% in January 2021, and the number of new prospective tenants registered per branch (on average) stood at 81. This is up, significantly, from the average of 64 in December 2020.
In January 2020, the number of new prospective tenants stood at 88, so the 2021 figure is marginally lower, but generally, it is a positive figure when you think of the upheaval of the past year.
39% of agents experienced landlords increasing rent in January 2021 compared to 30% in December 2020. However, in January 2020, 42% of agents experienced landlords increasing rent, so the annual figure represents a fall.
The number of tenants who negotiated a rent decrease dropped from 2.2% in December 2020 to 2% in January 2021.
This is higher than the January 2020 figure, where only 1.3% of tenants successfully negotiated a rent decrease.
Supply of rental stock
There were contrasting fortunes for the number of properties related to each branch.
There was a fall from the December 2020 to January 2021 figures, moving from 204 to 196. However, when you consider the January 2020 and January 2021 figures, there was an increase from 191 to 196.
Landlords selling BTL properties
The number of landlords selling their buy-to-let properties was constant at four per branch, which was the same figure in the January 2020 findings.
Mark Hayward, Chief Policy Advisor, Propertymark, said: “Our latest figures clearly show that the rental market isn’t indicating any signs of slowing down as demand for rental properties surged last month. Letting agents are continuing to support landlords and their tenants during these ongoing difficult times, and it is imperative that tenancies are maintained to keep the rent flowing.”
Mark Hayward also said; “Now have a route out of the current lockdown, it is vital that continuity in the private rental sector is maintained to continue to help the nation’s economic recovery from the pandemic. To do this, the government must consider introducing a financial support package for those tenants who have built up rent arrears due to the financial impact of Covid-19.”
Positive figures when you consider rental market disruption
No one would say these are the most positive figures seen in the rental market, but on the whole, there is a lot to be positive. To achieve these figures, even when many tenants have experienced disruption in the past year, is a good sign.
Findings issued by Spotahome suggests 77% of tenants have had their rental plans disrupted because of the lockdown.
Jorge Alonso, head of data and analytics at Spotahome, said: “It’s clear to see that the impact of the current pandemic continues to influence the decisions of tenants in the UK, with the ongoing restrictions in place causing many to reconsider their place within the rental market and when they plan to move. The good news is that for the large part tenants feel safe and while finances are a concern, they aren’t the driving issues for the vast majority. Uncertainty, space and quality of living conditions are far more important and this is a trend that is likely to remain as we’re eased back to normality.”
For rental enquiries in Stansted, please feel free to call us on 01279 358809 or why not email us at firstname.lastname@example.org. With considerable experience in the local market, and free valuation services, we look forward to helping you move.