The Covid-19 pandemic has fundamentally altered almost every aspect of our daily lives, and the rental market needs to adapt to these changes, which represent a ‘new normal’, according to Accommodation.co.uk.
The letting agency does not expect to see a reversion to pre-Covid-19 normality anytime soon, and is calling on buy-to-let landlords to adapt to changing demands in the PRS.
This tech-based company reports that a recent project saw more than half - 53% - of tenants, when given the option, requesting flexible rolling contracts with agreement terms of less than six months.
The property tech firm says that pre-Covid data showed that the vast majority of tenants were happy with the standard letting contracts but as job security and uncertainty becomes more concerning many are refusing to commit to long term rental agreements.
This new trend comes as the government extends a rule change that means courts will continue not to hear repossession claims by landlords until 20 September to help tenants cope withthe existing crisis.
The pandemic has highlighted ongoing historical issues in the rental market and landlords are having to adapt as renters expect more flexibility and access to a variety of different rental options such as build to rent and new builds.
Aaron Short, founder at Accommodation.co.uk, commented: “The future of the lettings market is exciting and if anything, the Covid-19 pandemic has accelerated the modernisation of this sector.
“At Accommodation.co.uk we have been at the forefront of updating this archaic industry and our data shows that the rental market needs to adapt to the 'new normal' ensuring tenants have variety, options and security more than ever.”
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I would go along with much of that, but what about the landlord that is faced with the tenant that will not pay, there needs to be change there as well.
Totally agree.
I'd love AST to be rolling 1 month contracts from the start with any rent default to result in eviction 14 days later like in Oz.
I have never liked the 6 month AST which results from eviction legislation and have refused to ever offer a 12 month one.
A rolling 1 month AST from the outset with the ability of both sides to give a month NTQ seems fair to me.
But of course tenant organisations want exactly the opposite.
They want long term contracts.
So a bit of a disconnect here!
I would prefer rolling one month, because I don't want to commit to six months, only to find that a neighbour is a nuisance. The uncertainty often puts me off renting and I'll look for lodgings.
Need political will, as the tenants only needs to plan for I month ahead and DWP work on monthly cycle. It should be easy . Issues of damage and deposit needs to be looked. May be tanents take a insurance policy over a year. Based on checking in and out inventory a quick decision is made re refund.
Can’t see it happening too many people fighting for their own benefit to make money out of red tape
In Scotland all tenants can give 28 days notice at any time, putting extra letting agent costs and hassle on landlords. Result is that rents for the best and highest demand properties have risen by 33% to compensate for the lack of security which landlords now face. Buying a property is a long term commitment for grown ups only. If immature tenants don't want any commitment then it comes at a cost. No benefit is without cost - simple market forces economics.
Be a grown up, and stop whining like an immature 'please place your pejorative here'.
Seb
I am NOT complaining. I have benefited hugely from the increased rents that market forces have pushed my way since the December 2017 legislation came into force.
I was merely pointing out the pitfalls of forcing landlords, who have to commit to long term investments, to accept all future tenants on a short term basis - which will inevitably reflect short term rental rates.
Don't think you could lease a car on the same daily rate for 28 days as for 28 .months. The same market forces apply to property rents, as proven in Scotland over the last 33 months. As ever, loony lefties end up hurting those they claim to support - but as long as their loony ideas get adopted they don't care.
Sounds like your complaining... but on the other hand, increased rents are a pitfall ?.. or is it the short term tenants on short term rental rates ?
1 day, 1 month, 1 year - what's your point ?.. if you don't like accommodation then convert your property into cars ?.. or maybe you should consider solar panels or wind turbines ?
All you are demonstrating is your inability to deal with market forces ?
Seb
You're an idiot!
Tell me where I am complaining or whining? My gross rental income has increased by around £50k in the last 3 years due to the loony SNP legislation.
Of course increased rents are a pitfall - for the tenants! Everything that the loonies try to do to harm landlords ends up harming tenants. I am pointing out the pitfalls of attacking landlords with ill thought out policies but I am certainly not complaining about the consequences for landlords which have meant a big increase in my gross and a more modest but welcome increase in my net income.
As for not understanding why the length of the rental term normally affects the rental rate, it shows a total lack of business understanding and you should not be wasting our time with your ignorant posts. I'm quite happy to be a wealthy landlord and have never said otherwise. I would never invest in depreciating items like cars, solar panels etc. I leave those for the less financially astute. How are they doing for you incidentally?
PS. If the local traffic is a bit too slow, try playing on the motorway!
Seb he ISN'T whining.
Just complaining justifiably about the even more dysfunctional Scottish PRT.
It is a useless piece of legislation and has cost tenants fortunes in increased rents.
Useless just about sums up the SNP Scottish Govt.
.No way would I ever consider becoming a Scottish LL.
Sorry Paul, I'll take you back to my, "what's the difference between gambling and speculating ?"
whining and complaining is different, how exactly ?
Bad legislation warrants complaints.
It is just semantics if you call it whining.
I would say complaining over duff legislation is correct.
Whining about something which is sort of OK ISN'T acceptable.
But the Scottish PRT is definitely NOT OK.
The problem as I see it is that where Scotland goes England follows.
Very concerning!
It's back to the... there are too many dogs barking in this room.
Nope there are NO dogs barking.
Just a few LL justifiably COMPLAINING about the iniquity of the bad legislation which is destroying the viability of many LL.
If these are the dogs then not nearly enough are barking loudly enough.
Ideally they'd be BITING!!
All the CAPITALS ?.. but your not BARKING ?
meh...
Ahh! Seb we LL should be veritable Rottweilers!!
That would scare the PTB out of their stupid anti-LL ideology.
Change the law or else!!!!
More hi-tech Digital Academics companies living off our backs telling us how everything should be to suit them but its not their property. So they are very excited about the future of letting that can only be about how much they can screw us for, they won't be doing anything other than playing with their buttons. LL's & Tenants alike are not excited but depressed with all this unnecessary interference driving wedges between LL & Tenant, divide and conquer causing mayhem. Talking about modernizing the sector then scrap HM0's that has driven lettings back to 1960's bed-sits, its madness planking all strangers into together sharing same facilities. Tenants should have more rights & Security that's fine buy your own you will soon learn lenders are not a soft option like Private LL's, you will not mess them around and good luck with your 35 year Mortgages. The New Normal is stuff the LL.
I'm afraid that you can only kick someone for so long before they are not prepared to take it anymore.
LL will simply sell up and get out of AST lettings.
Some LL could become latter day Rigsbys and have multiple resi properties they live in and take in lodgers.
A LL may have as many residential homes as he wants if he can afford them.
He is entitled to take in lodgers at each of them providing the LL genuinely occupies the property and has personal items etc there with all bills etc in his name.
That occupation could be 1 day per month.
There is no law that converts lodgers into tenants if a property is lived in by a LL whether it is 1 or 30 days a month.
AST lettings are a bankrupt business model if it is made continually difficult to repossess from feckless rent defaulting tenants.
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