The rental market looks set to recover faster than sales, with recent activity in the sector showing some glimmers of hope.
Goodlord’s latest Lettings Activity Tracker shows that there has been a remarkable rebound in the rental market after activity fell between March and April.
On the first day of June, new applications rose above 2019 levels to 111%. Volumes of new tenancy applications have now risen by more than 82% compared to the activity levels seen in mid-April.
Completed applications currently stand at 70% of 2019 levels, but continue to increase week on week.
Tom Mundy, COO of Goodlord, commented: “The whole industry breathed a sigh of relief on 13th May. Since then, it’s clear that agents have gone above and beyond to ensure lettings can move ahead safely and that demand for new tenancies can be handled effectively.”
The cost of rent, which now stands at an average of £862.48, has held fairly steady on the back of greater stability in the market, increasing marginally from April’s average of £861.25.
Growth in average rents was led by the East Midlands, North East, and Wales, which all saw a slight increase.
Prices in the North West, South West, and the West Midlands held steady, but dropped in London and the South East.
The average UK void period held steady at 23 days, but there was a significant amount of change within the regions themselves.
The East Midlands, Greater London, North East and South East all recorded increases in void periods. Whereas drops were recorded for the South West, Wales, and the West Midlands as the pace of market recovery was felt more keenly in some areas.
The age of the average renter increased from 32 to 33 years old, while the average salary of a UK renter also rose, from £24,525 to £25,068.
Mundy added: “We predict a little more ebb and flow in the market as it works to find equilibrium, but it’s wonderful to see the industry springing back to life in this way.
“The rental sector will be keeping the whole property industry afloat over the coming months and possibly years.”