Super-Strong Rental Market Will Last Through Summer And Beyond

Posted on: 4 June 2021

Super-strong rental market will last through summer and beyond

The ever growing rental market is set to last right through the summer and beyond according to the latest market research undertaken by PropTech platform Goodlord.

The new market landscape shows that voids decreased in 87.5% of the areas monitored by Goodlord during May, decreasing the average void period in England by a substantial  15 per cent overall.

The West Midlands saw the largest sway, with voids going down from 27 days to just 18 days - a depletion of a third. This was followed up by an 18 per cent drop in the South West, 15 per cent in Greater London and 13 per cent in the East Midlands. The only area to in fact improve and not document an increase in void periods was the North East of England.

We and therefore the property market are now one year on from the first National Lockdown of 2020 and Goodlord speculate that the current merriment could be down to renewals and fresh tenancies being filtered through a further 12 months down the line from the initial lockdown and the massive rise in activity during the months of May and July in that same year.

At the time of writing the average cost of rent in England has stabilised and is relatively unchanged going from £920 in April to £919 in May. There were in fact small rises in many regions including the North East, The North West and the South West all had fairly small rises but the East Midlands, Greater London, the South East and the West Midlands saw prices fall ever so slightly. In general no region recorded a rise or fall exceeding four per cent during the, month of May

 “We’re on track for a bumper summer of lettings. Whilst many agents have been busy with sales, the lettings market has been quietly gathering steam and now looks set to make things very busy for the rest of the summer” according to Tom Mundy, chief operating officer of Goodlord.

“This time of year is always a busy period but the combination of increased consumer confidence, pent up demand, and what looks like a more normal year ahead for student housing, is on track to deliver a hugely successful season for the lettings market.

“Agents and landlords should make sure they’re prepared for this demand and ready to capitalise on it.”

 

 To obtain more information of the current market Goodlord also measured the average income of the tenants, to quite some surprise the standard income for renters in England went up by 8.2 percent . After taking a hit at the end of 2020 and in the beginning months of 2021 it is no surprise that incomes are rising again as soon as the economy starts to recover from the past year and a half. To put it into perspective renters in London and the North East saw a 10 per cent rise in their take home pay over the last 6 months and it was even more in the West Midlands as they saw a 14 per cent rise . 

According to more information gathered by Goodlord we are on track for a bumper summer of lettings. Most estate agents are quite busy with sales but the lettings market has been quietly picking up pace and intern looks set to make things very busy for the rest of the summer according to Mr Tom Mundy who is the chief operating officer at Goodlord . “This time of year is always a busy period but the combination of increased consumer confidence, pent up demand, and what looks like a more normal year ahead for student housing, is on track to deliver a hugely successful season for the lettings market.

“Agents and landlords should make sure they’re prepared for this demand and ready to capitalise on it.”

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