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TODAY'S OTHER NEWS

Rental market activity shows ‘green shoots’ of recovery

There has been a significant increase in the number of rental properties hitting the market after lockdown on the sector was lifted last week. 

Fresh analysis of rental stock figures sourced from Rightmove and Zoopla shows that the number of rental properties coming onto the market has surged by up to 44% in some UK cities as landlords returned and letting agents were able to resume business.  

The research by Howsy shows that the number of available rental properties listed across the major portals the day after lockdown restrictions were eased across the UK property market, before comparing this to the number of properties listed in April.

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The data reveals that across 23 major UK cities, the number of rental properties now available to UK tenants has seen an immediate uplift of 5% on average. This increase has been driven by just seven cities, while the rest have seen further declines in rental stock levels.

The largest increase based on the sheer number of properties has been in London, with an additional 6,838 immediately hitting the portals, up 15%. 

In terms of percentage increases, Edinburgh has seen the largest influx with an uplift of 44%.

Cambridge has seen rental stock bolstered by 19%, with Aberdeen, which has seen a 16% increase, also registering a double-digit increase.  

Glasgow (+6%), Oxford (+5%), and Manchester (+0.2%) have also seen a lift in rental stock levels. 

 

However, some cities are yet to see a market recovery, with Bristol seeing stock levels fall by 22% since April. 

Bournemouth (-17%) and Plymouth (-17%) have also seen some of the largest declines.

Callum Brannan, founder and CEO of Howsy, said: “Many in the rental sector will be breathing a sigh of relief with such immediate green shoots of market activity returning to a number of cities following an ease in lockdown market restrictions. 

“Of course, other pockets of the market will take longer to see this positive trend emerge as agents and landlords find their feet operationally.

“We’re certainly not out of the woods yet and the ongoing financial and health implications facing many tenants and landlords will continue to be an obstacle. However, now that we as an industry are able to facilitate them on a greater scale, we can at least start to rebuild momentum in the sector.  

“Now, it’s vital that landlords receive the support and protection they need from us as an industry, to ensure confidence in their investment and to maintain a suitable level of rental stock to meet demand from tenants who rely on these homes in order to live.”

City

Total listings (April 2020)

Total listings (May 2020)

Total listings change

Total listings change (%)

London

46,621

53,459

774

44%

Oxford

1,385

1,460

131

19%

Cambridge

679

810

173

16%

Manchester

5,149

5,160

6,838

15%

Liverpool

3,393

3,164

100

6%

Birmingham

5,216

5,184

76

5%

Nottingham

2,058

1,846

11

0.2%

Leeds

5,794

4,981

-33

-1%

Sheffield

3,127

2,797

-134

-5%

Leicester

2,218

1,906

-216

-5%

Newcastle

4,020

3,805

-229

-7%

Southampton

2,888

2,619

-93

-7%

Portsmouth

1,034

943

-2

-8%

Bournemouth

1,295

1,073

-92

-9%

Plymouth

1,147

951

-270

-9%

Bristol

1,887

1,481

-213

-10%

Cardiff

2,642

2,508

-331

-11%

Swansea

1,281

1,188

-813

-14%

Newport

226

193

-312

-14%

Glasgow

1,591

1,690

-34

-15%

Edinburgh

1,747

2,521

-196

-17%

Aberdeen

1,084

1,256

-222

-17%

Belfast

26

24

-406

-22%

All cities

96503

101013

196

5%

Rental stock figures sourced from Rightmove and Zoopla

Figures compare online rental stock for each city from 1st April 2020 and 13th May 2020

Poll: Is the private rental market on the road to recovery?

PLACE YOUR VOTE BELOW

  • Mark Wilson

    It will be very interesting to see how far rents fall. Very early days to spot any tren, but in central London my office is thinking circa 20%- 30%.

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    Expect you could be right Mark, so glad I'm not in London, just a Norfolk boy, and yes they could drop around here, but not like they will in London.

     
  • icon

    No drops in the south if anything rents on the up again. Remember location location location

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    However, affordability may be a limiting factor going forward, especially in London and the South East, where rents are three times what they are where I am in Wales.
    If there are significant job losses, then the expensive areas will be 'hit for six'.

     
  • icon

    'There has been a significant increase in the number of rental properties hitting the market after lockdown on the sector was lifted last week.' Really?? I never would have guessed!! Bit like saying Tesco's (other supermarkets are available) sell more when they are open compared with when they are closed. Or hairdressers will take more money when they're allowed to open compared with now. Yet another example of estate/letting agents trying to 'talk up' the market. Certainly nothing to justify the 'green shoots of recovery' wording of the headline. Look forward to better research.

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    Hi John, I know rents are 3 times higher is South East than in Wales but don't forget property prices are 6 times higher in London. so you are far better off than us.

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