Tenant Demand Is Evolving

(Posted on 19/12/20)

While there is considerable focus on the property market right now, we know there is still considerable demand for rental property. Also, what tenants want to see in rental property is evolving.

At Ashton & Grosvenor, we are here to help landlords and tenants connect. If you are looking for assistance in this area, please get in touch, and we will be happy to help.

Tenants want new things in a rental property

It shouldn’t be a surprise to learn the COVID-19 pandemic is creating new demand in the rental market. Some of the most pressing demands in major cities now include:

• More space

• Access to a garden

• Access to a balcony space

• Having a local park or open space nearby

There has also been some analysis which indicates people are leaving larger cities, such as London.

Recent studies by Home.co.uk indicate there has been a significant rise in the number of rental properties being supplied in London compared to a year ago. The property search engine states there has been a rise of 68% in the supply of rental property in London, as tenants don’t renew their tenancies.

Another issue highlighted in the study is that the typical time on market for rental property in London is 29 days. This is the highest figure of all the regions, and is an indicator that London landlords are struggling to connect with tenants who are keen to stay in the capital.

There are winners and losers in rental property market

Some notable falls are as follows:

• The City of London has seen rents fall by 28.8%

• Hammersmith and Fulham have experienced falls of 23.5% for rents

• Kensington and Chelsea have seen rents fall by 22.5%

However, in the suburbs of the capital, rents are rising, and the following areas have all seen rents increase:

• Bexley has experienced an increase of 4.2% in rents

• Havering has reported an increase of 4.6% in rents

• Croydon has experienced a rise of 6.7% in rents

The only region of England which has seen rents fall in the past year is Greater London. Conversely, the only region of England which has seen the typical time on market rise is Greater London. Compared to this time last year, it takes, on average, four more days for a landlord to find a tenant here.

Areas where rents have risen, caused by a shift in the imbalance between supply and demand, include:

• A 9.5% rise in the East Midlands

• A 6.7% increase in the North East

• A rise of 11% in the North West

• A rise of 14.7% in the West Midlands

• A rise of 8% in Yorkshire and Humber

• A rise of 1.4% in the South-East

There has been a considerable increase in rents in Wales in the past year, increasing by 22.3%. The average rent in Wales stands at £894 a month and the typical time for rental property to remain on the market is 15 days. This is a fall of three days compared to this time last year.

Director Doug Shephard said: “While homeworking is not an option for all, this lifestyle change is now a key trend that is reshaping rental demand. Since the Greater London rental market represents nearly half of the UK lettings market, any refocusing of demand towards the regions will have a dramatic effect on the balance of supply and demand. This is why we are witnessing dramatic rent hikes in most English regions, Scotland and Wales.”

Doug Shepherd continued by saying; “In fact, Welsh rents, and home prices for that matter, are rising to such an extent that locals fear of being priced out by newcomers. Wales will certainly not be alone in feeling the knock-on effect of the exodus from the UK’s largest cities.”

We offer a range of letting services to landlords in Chester, including tailored options which ensure you receive the best support at all times. If you would like to arrange an appointment to help you negotiate the local buy-to-let market, please contact Ashton & Grosvenor today by calling us on 01244 318 115 or emailing us at hello@ashtonandgrosvenor.co.uk.