Rents continued to increase during the first quarter of the year, owed in part to a lack of supply and increasing demand, the latest data reveals.
The Zoopla Rental Index, released yesterday, should leave many landlords with a long-term buy-to-let strategy feeling rather confident, according to Neil Cobbold, chief sales officer at PayProp.
There are signs that rental demand is already starting to recover, after plummeting in the second half of March.
“The bounce in rental demand after an initial drop-off shows that renters are starting to look at moving options for when the lockdown period ends,” he said.
Demand for rental property increased by 30% in the two weeks to 14th April, although it is worth noting that this hike comes off a low base following the impact of coronavirus, which saw a 57% fall in demand for rental housing in the two weeks to 30th March, according to Zoopla.
The impact of coronavirus has been negative, but it has been less pronounced in the letting market compared to the sales market, highlighting the fact that the rental sector is far more dynamic in comparison.
Cobbold added: “While it's positive to see that there has been no mass withdrawal of properties by landlords, the pause on sales and lettings activity may simply mean they don't have many other options.
“In light of this, measures like the Coronavirus Job Retention Scheme will be essential to ensure that landlords can continue to receive rent despite the financial pressures caused by the coronavirus pandemic.”