Maxine's Regional Lettings Update
We continue to have more applicants than property and many of our rental homes are going under offer before they hit the market due to high demand. With regards to the rental price, this differs for:
- Properties new to the market, or being re-let after a tenant has vacated
- Properties renewing with the same tenant or going onto a periodic tenancy
New to market rental pricing
Here we are seeing some pretty substantial price increases. This is down to 2 main factors:
Supply and demand: Supply is DOWN by 34% and demand has increased YOY.
Landlords updating and renovating their properties: Upping the condition of your property offering will always see a rise in your rental price.
Renewed fixed term or periodic tenancies
With the tenant in situ, we saw many landlords reducing their rental price or leaving it static throughout the pandemic. With the lockdown easing we are starting to see a few more landlords asking for increases now, up by 3.3% in PE postcodes, but as yet, unchanged in CB postcodes.
One of the biggest issues we have faced throughout the first half of 2021, and it is continuing, is the reluctance of occupied property tenants to allow lots of viewings. However vigilant our viewing staff are with their surface sanitising and PPE wearing! To overcome this, we have been conducting many ‘Virtual Viewings’ so that one ‘viewer’ – a member of our team – walks around the property and videos this LIVE on our Facebook Page, and that viewing is viewed by 100s online, so it really does give peace of mind all round by reducing the number of people in close contact.
National online survey among 217 ARLA Propertymark members from 1st – 21st June 2021:
- The average number of new prospective tenants registered per branch jumped in May to 97, from April’s figure of 82. Year-on-year this is the highest figure on record for the month of May, with the previous May high being 70 prospective tenants registered per branch last year.
- In May, tenants stayed in their rental properties for 21 months on average, a slight increase from 19 months in April. This figure is also slightly higher than during May 2020 when the length of tenancy also stood at 19 months.
The return of in-person Right to Rent checks has been delayed in line with wider Government safety guidance around limiting the spread of Covid-19 infection and we can carry out these checks by video call, to the end of August. However, remember that from 1 July landlords and agents must move from checking nationality to checking the UK immigration status of all adult applicants.
Read an extensive look at the legal updates here.
Prediction: property market to fall through the floor
Well, that’s what Mr Osborne (Chancellor at the time) predicted 5 years ago, just before we all went to vote on Brexit. How correct was he?
I thought I would share this interesting article by Paresh Raja for Property Reporter, have a read: