Demand for rental properties at all time high

News at Waterfords | 29/07/2020

According to Rightmove, average asking rents outside London hit a record of £845 per month, the highest annual rate since Q2 2016. This is up 3.4% on the same time last year. Demand for rentals is now 40% higher than the same time last year and the number of people getting in touch with letting agents hit an all-time high in early July.

In contrast, the capital’s asking rents started to fall across April and May. London asking rents are now lower than this time last year, £60 cheaper than Q1. It’s thought that the dip in asking rents across London is a result of landlords with holiday lets now competing for long-term rentals, which has helped drive prices down for tenants.

How has this impacted rental stock?

Rental listings dropped by an average of 50% during lockdown. They are now up 1% on the same time last year. This is fuelled in-part by a rise in short-term holiday lets entering the long-term rental market.

Will the stamp duty holiday affect the rental market?

Despite the various challenges in the rental sector, 25% of landlords are still planning to expand their portfolio. This may be boosted further by the recent stamp duty holiday announcement. Although landlords have to pay the additional 3% charge, landlords will still make savings on the total amount of stamp duty payable on the property.

The new stamp duty holiday will hopefully encourage landlords to invest in more stock, creating more choice for tenants. There are signs that some existing London renters are looking to move further afield, driving up demand for rental properties in Surrey, Hampshire and Berkshire.

Why is demand for rental property suddenly higher in Surrey, Hampshire and Berkshire?

The latest property market research from Dataloft Inform shows that home mover requirements have changed, with moving to the countryside at the top of the list of priorities. The latest data shows that 51% of people living in London who are looking for a property, are now looking outside of the city in the hunt for fresh air, green space and a larger property for their budget.

The increase in home working means that property in Surrey, Hampshire and Berkshire is in high demand, with people realising they can enjoy life in a more peaceful and rural area with a commute of under an hour into Waterloo and Paddington.

Landlords and investors, we need you!

With so many tenants searching for their next home in the Surrey, Hampshire and Berkshire region post-lockdown, demand for rental properties is at a record high this summer. If you have a property to rent get in touch with our friendly team. We have flexible property management packages for all landlords and our aim is to take the stress out of the process with excellent customer service.

Have you thought about lettings?

Perhaps your property is struggling to sell for the price you expected, or you are unsure whether you want to commit to selling your home just yet but need to relocate. Waterfords can provide a free, no obligation lettings valuation for your property. You don’t always have to sell your home in order to move house!

Try our instant online valuation tool

Our instant online valuation tool gives you an estimate of your home’s value to both sell and let. If you are curious to find out how much your home is worth, you can find out in seconds. If you want a more accurate market appraisal of your property then book an appointment with our friendly and knowledgeable team.