Are you trying to secure a rental but finding that pickings are very slim? According to a new report highlighted by the BBC this week the outlook for the private rental market is ‘unusually uncertain’ after nearly two decades of growth.
Since the start of the pandemic – March 2020 – some 300,000 fewer properties have come onto the rental market than during the preceding 12 months which is inevitably having a massive impact on the rental market.
So why are there so few rental properties? There are five main drivers behind the current lack of stock:
- The increase in house prices caused by the Stamp Duty Holiday sales surge has indirectly obliged more tenants to stay renting – because they, and the all-important first-time buyers, cannot afford the larger deposits being demanded by the banks
- Lockdown has driven many people into rental properties outside of London as they wished to make the move quickly and then take time to find an onward purchase. Savills note a 7% increase in rents in the past year for village properties closest to London
- The knock-on effect of this being that the lack of supply in the sales market is has meant that these new renters are renting for longer as they search for their onward purchase
- With property prices rising and the Stamp Duty holiday, many Buy-to-Let Landlords are capitalising on their investments and are selling
- Due to the pandemic, Landlords cannot give tenants the usual two months’ notice; landlords need to allow six months’ notice before evicting bad tenants
Savills note that the pandemic has also had an impact on rental demand and availability. They note that: ‘Demand in the commuter zone continues to come from a variety of sources. Long-term renters are competing with those looking to rent while they search for a suitable property to buy and others looking for a weekend property to enjoy as social distancing measures are gradually eased’.
This demand has depleted levels of available stock, coming at a time when the strength of the sales market has encouraged many accidental landlords to sell.
Savills go on to comment that: ‘Other investors, put off by increased regulation in the sector, have also taken stock out of the rental market as they look to lock into current rates of capital gains tax, which are widely touted as a target for the Chancellor.
Together, this has meant 92% of Savills lettings agents in the commuter zone have reported a fall in the amount of stock available to rent. Most say that their market is fundamentally undersupplied, describing a notable increase in incidents of competitive bidding among tenants in what is undoubtedly currently a landlord’s market.’
So how do you access rental properties in this challenging climate?
With such slim pickings, renters need to be ready to act quickly as demand is far outstripping supply. If you are keen to rent be sure to:
- Have ability to view ASAP
- Be flexible on location and the property – you are not choosing a forever home
- Have your documentation at the ready – agents will need to see your proof of ID for right to rent checks and proof of your salary
- Be sure you can afford it – to calculate your monthly rental outgoing divide your salary by 30
- Be able to react quickly
Chiltern Relocation have recently secured a number of rental properties off market for our clients. We have excellent links with local estate agents so we are fortunate to view many before they come to the market and landlords are keen to rent to our clients.
If you would like any help with a rental search please do get in touch. Email: enquiries@chilternrelocation.com Call: 01494 672086 or visit www.chilternrelocation.com
