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.”
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'Goodlord' is a software company. So it's really not an appropriate company to give a statement like in the heading. If it was them, it's clear. Or to state "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”, as quoted in the article. Better research please, Landlord Today. Many Thanks.
Potentially many more new lettings could have been achieved.
As it is there can't be unless all the rent defaulting tenants vacate.
Many LL are facing bankruptcy unless they are permitted to at least try to evict quickly so that they have a chance to source tenants who will pay rent.
It is simply outrageous that LL are being forced to continue to house rent defaulting tenants.
Govt should simply announce that at the end of the eviction ban all rent defaulting tenants must vacate properties if the LL wishes that to occur.
Any tenants refusing to vacate to be removed by Police IMMEDIATELY.
This will give those rent defaulting tenants the opportunity to source cheaper lodgings so even more new rental activity could occur.
The rental market has changed.
Tenants need to accept the situation and adjust their domestic circumstances in light of what for many is considerably reduced finances.
It cannot be allowed that for many LL they are facing year long eviction processes with tenants refusing to pay rent.
Before an eviction occurs many properties will have been repossessed by lenders forcing many LL into bankruptcy.
Govt by it's ridiculous eviction ban is making a bad situation even worse and is effectively conspiring to put many LL out of business.
LL must be given the opportunity for price discovery which is not possible while rent defaulting tenants are still occupying rental properties.
Effectively a large proportion of the rental market has been suspended.
This distorts the market in total.
Govt simply cannot be permitted to make so many LL bankrupt.
If Govt really wants to assist tenants then it should provide loans to tenants to enable all rent arrears and future rent to be paid.
Such loans could then be recovered over say 5 years from tax code adjustments.
It should not be for LL to subsidise feckless rent defaulting tenants which is what Govt is effectively doing by it's incompetent policies.
All LL ask is to be given the chance to operate in a realistic market which can only be achieved if rent defaulting tenants can be removed quickly.
To date it seems that this situation will remain for many months.
It is simply appalling that Govt by it's incompetent policies will be putting many LL out of business or causing extreme financial distress for those LL able to survive.
I'm sure this effective persecution of a minority is against the UN human rights.
The Govt should be sued by the UN for what will be a destruction of vast parts of the PRS.
When will Govt realise that LL are in the game to make money and NOT to provide FREE accommodation!!!
Paul, you always have a lot to say on this site and have strong opinions, some of which I find very persuasive. I'd be interested to know if you write elsewhere and also if you campaign or lobby for Landlord rights and so forth.
Paul always has a lot to say on here and 99% of the time he's spot on right, a man who tells it as it is please or offend, maybe when he sells his properties and retires he'll sit down and write a best seller, then we can all say we knew that man Mr Barrett.
Paul - Very well said and so right.....
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