TV property guru Phil Spencer is advising that landlords wait a short period before advertising any empty properties.
He says that many students will be entering the rental market in the coming weeks as universities begin their new academic years – and in some cases those students may chop and change their property choices at short notice.
Spencer says: “Timing is everything … landlords might want to consider how and when they advertise their properties – though September might bring plenty of candidates, if you are looking for a longer-term tenant, it could be worth waiting for a few weeks until the back-to-school flurry calms down.”
His comments come with the arrival of the latest Barclays Bank snapshot of the rental and mortgage markets.
Barclays says spending on rent and mortgages grew by just 1.1 per cent in August, the lowest rate recorded since March 2023.
The proportion of consumers confident in their household finances hit 70 per cent for the first time since April this year, up from 65 per cent in July. Confidence in the UK housing market has also risen, increasing from 25 per cent to 29 per cent in the same four-month period.
However, with 78 per cent of mortgage holders reporting they have a fixed-rate deal, only a small proportion of consumers will be feeling the benefits of recent interest rate reductions. This is reflected in the marginal decrease in those not confident in their ability to afford rental or mortgage payments, which dropped from 16 per cent to 15 per cent month-on-month.
Barclays says that for renters, competition for properties is an ongoing struggle as, for the fourth month in a row, 20 per cent report getting less value for their money due to high demand. Amongst the 18-34-year-old group this rises to over a quarter (26 per cent).
Young renters are also facing additional pressures as students enter the market for the new academic term, with more than one in six (17 per cent) saying the influx of students is causing too much competition for properties. Given the extra squeeze on housing supply, only 14 per cent of 18-34-year-old homeowners say they are considering selling their home, with many opting to retrofit instead, as three in 10 (28 per cent) say they are making improvements to their home to make it more energy efficient.
Mark Arnold, head of mortgages and savings at Barclays, says: “In the year to date we’ve seen encouraging signs that spending on rent and mortgages is decelerating on the whole, but unsurprisingly it isn’t a linear descent and we could see some volatility over the coming months, despite the recent interest rate cut.
“Many people think that interest rates are what really determine the mortgage market – and whilst that’s true to some extent , for me, the biggest driver is confidence. If you’re going to make the biggest purchase of your life, you need to be confident that the economy is stable, inflation is under control, and you know what you’re going to pay. That stability and confidence will determine how people spend, even for renters.”