Published: 30/03/2021 By ARThe pandemic, and associated lockdowns, have caused problems and opportunities for landlords. With many households facing financial difficulty, it would be wrong to suggest that this has been anything other than a worrying time for all concerned.
However, many people have re-evaluated their property needs over the past year. Some tenants have decided they must own property, but other tenants have decided to find a bigger or better rental property.
There has been a movement in the rental market, and this will continue to be the case. It also appears as though there are fewer rental options for tenants, which creates an opportunity for landlords.
A change in landlord behaviour in past 12 months
Since the beginning of the pandemic, 300,000 fewer properties were placed on the rental market than in the preceding 12 months.
Except for the capital, the number of rental properties on the market dropped by double-digit percentages compared to the same time last year.
For February 2021, there were 16% fewer properties available for rent in British cities than for February 2020. The figure dropped by 28% for towns, and for country locations, the drop-off was 52%.
However, rental property demand also changed in city areas, with prospective tenant numbers falling by 10%. In the countryside, the numbers remained consistent.
In the short-term, the drop in rental homes on the market has helped landlords achieve higher rental fees. The study carried out by a leading name in the property industry suggests at least 50% of landlords managed to secure a higher rental fee than before.
Landlords can grasp an opportunity
This proportion stands at the highest proportion since 2016, so there is a slight cause for optimism amongst landlords right now.
Aneisha Beveridge is a well-known name in property market research in the UK, and she spoke on this topic, saying; “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.”
Aneisha continued by saying; “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. 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.”
Aneisha concluded by saying; “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.”
If you are a Leeds landlord who has recently bought property with the intention of letting it out, we would love to hear from you. There is considerable demand for rental property in, out and across Leeds. We have a strong track record in connecting landlords with tenants, and we look forward to assisting you as best we can.
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