Since activity resumed in the property market rental demand has continued to rise. According to Rightmove, upon the reopening of the property market rental searches rose by 22% higher than May 2019. With people being able to streamline their searches with virtual viewings, and finally be able to physically view property they are interested in, this has enabled more effective property searches. The private rented sector can work at a much faster pace than sales with less paperwork and planning; further accelerating the activity.
The prop tech firm Goodlord found that the first two weeks of June saw new and completed lettings applications rise above 2019 levels, and they are now maintaining a steady pace similar to that of 2019. Lockdown has caused many changes in people’s lives including possible job changes and lifestyle priorities, leading the intense demand for rental property. Whilst the supply of rental property has also increased, Rightmove’s Miles Shipside believes that a shortage of available rental property to meet demand could push up rent prices and allow landlords to be more selective when choosing tenants – and a rise in prices has already been identified.
The latest figures from the Office of National Statistics has found that rent prices have already crept up, with the average rent price in the private rented sector in England at a new record high of £700 per month! As expected, rental properties with more bedrooms can secure higher rents, with properties only offering single rooms having the lowest monthly rent. The highest rents were found in London compared to any other region, as anticipated.
As an investor, it is unlikely for your property to experience a void period with such high rental demand – reducing the risk to your investment. Tenant demand is soaring across all regions of England (a regional outline is listed below):
||Lettings Demand Increase Since 2019 (%)
|Yorkshire and Humber
|East of England