At Andrew Lees Lettings, we appreciate the challenges of the past year has shifted how many landlords and tenants look at the rental market. Many people have looked to move home, and of course, there has been a change in the type of property, and location, people are looking for.
This has been seen with people leaving cities, moving to more rural areas. At the same time, it appears as though there has been a drop in the number of rental properties being listed.
Fewer rental properties available for tenants
A recent study suggests 300,000 fewer rental properties have made their way to market in the last 12 months. The only area where there were more rental property on offer this year, than in February 2020, was London. The most significant decline came in the South West and Wales. There was a drop of 48% for available homes in these areas.
Urban and rural divide notable in Britain
For cities across Britain, there was a 16% rise in homes available this year, than in 2020. However, for towns and rural locations, there were rises of 28% and 52% respectively.
The number of prospective tenants in rural areas remained flat, but in cities, there was a fall of 10%.
Lack of rental supply boosts landlords
According to the study, the lack of rental property on the market has helped 50% of landlords to secure a higher rental fee than they had previously achieved. This is the most significant proportion since 2016. The average increase in rental fees was £60 per month.
However, it was a different story in the capital. Only 37% of landlords were able to secure higher rental fees. This makes it the lowest proportion in all areas. In the South West, 62% of landlords were able to achieve higher rental fees.
Aneisha Beveridge, a noted name in the property research sector in the UK said; “Tenants are now faced with significantly less choice, which in turn is pushing up rents. And with many landlords having multiple offers on the table, half of investors have been able to increase the rent they charge. Rental stock levels have also been hit with the onset of the pandemic causing investors to hold back. This has been compounded by emergency legislation which saw landlords having to extend a tenant’s notice period to a minimum of six months, reducing turnover further.”
Aneisha also said; “At the same time, many renters who were looking to buy had to put their plans on ice and continue renting, as banks sought larger deposits for house purchases. However, there are signs that this could change. Over the last five months, and in an effort to beat the original stamp duty deadline of the end of March, landlord purchases started to rise, which will add to stock levels when these homes complete.”
As an experienced letting agent serving the Bridgwater community, and many of the surrounding areas, we are here to help. We promise to stay in touch with the latest technology, helping our clients to achieve more, and we aim to support the local community as best we can. If there is anything, we can assist you with; please contact Andrew Lees Lettings today.