The return of the property market has led to a spike in activity as people are confident to move again post-lockdown.
So much so, that the number of new tenancies is almost back to pre-pandemic levels and average rents have risen since the last quarter, according to fresh research from The Deposit Protection Service (The DPS).
While the market has yet to fully stabilise, this surge in demand is more than welcome for landlords and investors.
Here at Key Property Consultants, we analyse how the rental market is steadily recovering and what this means for landlords operating in South East London.
New tenancies bounce back
The height of the Covid-19 pandemic saw the number of new tenancies decline significantly, with restrictions on moving home including only moving in exceptional circumstances and a ban on evictions, which is set to end on August 23. This correlated with a 32% reduction in new tenancies.
Consequently, new tenancies registered with The DPS fell from just under 60,000 in March to just over 32,000 in April.
However, the month of June saw a rapid recovery to just under 56,000 registrations as lockdown measures relaxed. The DPS predicts the trend of tenancy moves will continue to return to pre-pandemic levels over the summer period.
London rents on the rise
According to the report, tenants paid on average £782 per month during Q2 2020 – an increase of 0.90% on Q1 2020 and 1.56% more than Q2 2019.
Rents across all property types also rose during Q2 2020, with terraced property rents increasing the most, from £725 in Q1 2020 to £739 in Q2 2020 (+1.93%).
London remained the most expensive place to rent in the UK, with monthly average rents in the city static at £1,345 for the past three consecutive quarters. Excluding the capital, the average monthly rent across the UK is now £808, up by 1.8% on last year.
In Greater London, average monthly rents reached £1,611 – a 1.8% rise on £1,583 the previous month.
Why is this good for landlords?
With the unforeseen circumstances of lockdown driving demand in the rental market, landlords can look forward to an increased appetite from prospective tenants.
These renters are likely to be a combination of people who wished to move before lockdown and people who decided to move during lockdown all now being able to relocate at the same time.
Increased demand means more competition for rental property, allowing landlords to let quicker and for a higher rental price. With a wider pool of potential tenants to choose from, landlords can ensure that they choose the best fit for their property.
Now that more renters are searching for their next home – many of which are prioritising properties with garden and outdoor space – there is a higher chance that they will be willing to stay for a longer period.
This is likely to create a knock-on effect, as long-term tenancies help to reduce the stress and fees of finding new tenants, meaning landlords can enjoy shorter void periods, financial security and regular income.
Here at Key Property Consultants, we can assist you with the letting process while also sticking to the government guidelines. For more information on our operations, please get in touch with us on 0203 793 2033 or email us at email@example.com.
Alternatively, if you wish to see how much rent you could be charging each month, you can request a free and instant online valuation today.
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