UK Rental Market Growth & COVID-19 Recovery
The restrictions imposed due to the COVID-19 pandemic have been lifted. Following this, the UK rental market is bouncing back at an unexpectedly high rate.
Rental searches had declined over the past few months owing to the varying levels of lockdown restrictions. In fact, Zoopla had indicated that the fall-off in demand was as high as 55%. But, as domestic and international tenants resume activities, there is now an uptick in the market. The Royal Institution of Chartered Surveyors (RICS) confirmed the increase in its July 2020 UK Residential Survey.
The significant uptick in the real estate market has been in residential sales owing to the Stamp Duty holiday. But the UK rental market is also feeling the positive effects. According to RICS, rents may rise over 1% at the national level for the next 12 months.
In addition, results from independent polling by the National Residential Landlords Association (NRLA) has shown that 87% of private tenants have been paying their rent as normal during the pandemic. Eight per cent indicated that they worked out a reduced payment or other payment arrangements with their Landlord. This is a positive development for property rentals.
So, what does this mean for homeowners with property to let?
Homeowners seeking to let their properties should ensure their listings are visible. They need to be ready for the current influx of searches from both local and regional home seekers.
Taking advantage of the current UK rental market
According to Zoopla, the demand for rental homes is currently higher than pre-COVID and 2019 levels. This is assumed to be because of pent-up demand from renters who had to place their plans on hold due to the lockdown.
However, uncertainty does continue. Future outbreaks and effects are unpredictable. It’s difficult to determine how this will affect the resumption of student life, office work, and tourism.
Further, decentralisation of rentals away from London may also increase post-pandemic as more companies embrace remote working.
As The Telegraph noted, working from home forced by the pandemic has performed a little too well for some companies. Both employers and staff for certain industries have realised immense savings and productivity boosts from remote working. So, despite the calls by the government for workers to head back out, many companies aren’t pushing the issue.
Now, as the expected influx of local and international renters come in, their search may not focus on top property areas like London. This area is often underserved in the UK rental market. They may shift their focus to suburban areas and other parts of the UK if remote working continues.
So, what can you do to prepare or take advantage?
Listed rental properties with Kunda House
Let Buy Landry matches home seekers with homeowners for rental properties in the UK. We help to service the student, professional, and family rental market. But we also offer the added benefit of finding professional home-related services. These professional services cover repairs, maintenance, and more.
As we restrictions ease and we try to return to some normalcy, let’s make sure you can take advantage of the current rental market.
Home seekers – explore rentals in your preferred cities and suburban towns.
Homeowners ready to let your properties – list on Let Kunda House for visibility.