With the number of new tenancies currently being agreed at an historic low, there is evidence to suggest that there will be a softening in rents in the short-term, according to Simon Shinerock, chairman of Choices Estate Agency.
With more than 30 years of experience in the property sector, Shinerock has provided a forward-looking view of the PRS, including actual rents being achieved, by agreeing to take part in a new five-part video series this week, hosted by Property Tribes.
Looking specifically at ‘prospects for private sector rents’ today, Shinerock, who last year released the Advanced Rent Option, which allows landlords to receive a year's rent in advance, said that he believes “there will be a lot more softness on rents for a while” as many existing tenants look to “stayput”, rather than move home in this uncertain time.
The head of Choices also expects to see a significant increase in the number of landlords and homeowners switching from short-term lets to longer rentals as tourism tanks due primarily to the Covid-19 outbreak.
“I think there will be some tremendous difficulties in some of the Airbnb type rentals,” he added, with some of that housing supply “coming onto the long-term market”.
You can see Shinerock's wider views on ‘prospects for private sector rents’ in the video below.