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TODAY'S OTHER NEWS

Higher numbers than ever have renewed tenancy deals since the lockdown

The number of tenants renewing private tenancy agreements is rising, as people opt to stay put given the global uncertainty.

The number of tenancy renewals agreed since lockdown measures were introduced is 15% higher than the equivalent period last year and the highest figure in 10 years, according to Knight Frank. 

The renewal agreements relate to tenancies that are due to end in May and June.

“While demand is rekindling, more people are also opting to go with the status quo, particularly if there is no pressing need to move,” said Gary Hall, head of lettings at Knight Frank.

Knight Frank reports that demand for new tenancies is starting to strengthen, as more tenants plan for life after lockdown. 

In the first week of government restrictions, the number of new prospective tenants registering in London and the Home Counties dropped 59% compared to the five-year average. In the week ending 18 April, the decline was 28%.

“In the early stages of the lockdown people froze,” said Jon Reynolds, head of lettings for the City and East region of London at Knight Frank. “That has changed as time has gone on. People now know whether they’ve been furloughed or not and some are starting to plan for life after the lockdown.”

The number of online views for rental properties has also increased in recent weeks. In the week ended 4 April, the figure was 1% higher than the five-year average. By the week ending 18 April, the increase was 10%.

David Mumby, head of central London lettings at Knight Frank. “It [the letting sector] is the most nimble area of the UK housing market and we trade by the day with a product that can come on or off the market. 

“Small variations in currency or tax policy can produce sudden changes in demand and the infrastructure is now in place that means we can move people quickly.”

Poll: Have any of your tenants renewed their rental agreements since lockdown measures were introduced?

PLACE YOUR VOTE BELOW

  • Paul Barrett

    There is no point in LL renewing tenancies.
    Just allow them to proceed onto a SPT or CPT.

    All a new tenancy does is prevent LL from evicting.
    Pointless as if tenants wish to vacate they will irrespective of any stupid AST.
    No LL would succeed in recovering rent for the remaining period of the AST.
    No way would I EVER renew an AST unless there was a rent increase for the new AST which I would only ever do for 6 months.
    So why LL are renewing AST's beats me!

    No LL has ever succeeded in making a tenant complete their AST if the tenant wishes to vacate early.
    All a LL needs is the initial 6 month AST and from then onto a rolling 1 month tenancy.
    Any rent increase may be enacted by a S13 once per year.
    Most tenancies are renewed because of greedy LA.
    They are simply fee gouging.
    It matters not whether a formal tenancy is in place it takes just as long to get rid of rent defaulting tenants.
    With the abolition of S21 and the AST it will take even longer than it does now.
    It will take about 2 years to get rid of rent defaulting tenants when only the S8 process remains.





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    Agreed, I never renew an AST I just let them roll over and use S13 to increase rents when necessary.

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