UK Rental Market Growth & COVID-19 Recovery Insights

At Kunda House, our mission is to keep our clients well-informed and empowered with valuable insights into the continually evolving real estate landscape. In this article, we will delve into the remarkable resurgence of the UK rental market in the wake of the COVID-19 pandemic. We aim to provide you with a comprehensive overview of the current state of the UK rental market, shedding light on key trends, challenges, and opportunities that both landlords and tenants should be aware of.

The Impact of COVID-19 on the UK Rental Market

The COVID-19 pandemic brought unprecedented challenges to various sectors, and the real estate industry was no exception. In the initial stages of the pandemic, rental searches saw a significant decline, with restrictions and lockdowns affecting the movement of people. Zoopla reported a staggering 55% fall in demand during this period. However, as the nation gradually emerged from the crisis, the rental market displayed remarkable resilience.

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) have 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.

The Road to Recovery: UK Rental Market Post-COVID-19

As we navigate through the recovery phase, it’s essential to acknowledge the positive signs that have emerged within the UK rental market. The Royal Institution of Chartered Surveyors (RICS) confirmed a notable increase in July 2020, signifying a strong rebound. The real estate market, primarily in terms of residential sales, experienced an upswing, partly due to the Stamp Duty holiday. But the rental market didn’t lag far behind.

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 continues. 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, decentralising 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 comes 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?

Embracing Remote Work and Rental Preferences

The landscape of remote work is also contributing to shifts in rental preferences. The pandemic forced remote work upon many industries, and the results have been eye-opening. Numerous companies have realized substantial savings and productivity boosts from remote work arrangements. Consequently, despite government calls for a return to office work, many companies are opting to continue remote work policies.

As a result, the expected influx of local and international renters may not solely focus on prime property areas like London. Historically underserved areas in the UK rental market may see increased attention as remote work continues to gain traction.

Preparing for Success: Post-Pandemic Rental Strategies

So, what can you do to prepare for or take advantage of these developments? At Kunda House, we have the answers. We specialize in matching home seekers with homeowners for rental properties in the UK. We cater to students, professionals, and families, providing a comprehensive range of rental services. Moreover, we offer additional benefits, including professional home-related services such as repairs and maintenance.

As restrictions ease and we strive to return to a semblance of normalcy, Kunda House ensures you can harness the full potential of the UK rental market.

Listed Rental Properties with Kunda House

At Kunda House, we are committed to providing you with the insights and services you need to navigate the dynamic UK rental market successfully. Stay informed, stay prepared, and let us be your guide in this exciting journey of post-COVID-19 rental market growth.

For more detailed information and personalized guidance, feel free to reach out to us at Kunda House. Your success in the UK rental market is our priority.

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 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.