BOOM! Rental market activity jumps as Covid rules relaxation prompts city revival
UK rents outside London are up 3% since this time last year, signalling the highest level of growth in four and half years.
Rents are rising fastest in the North East (+5.5%) and the South West (+5.3%) – the strongest rates of growth in a decade amid increased demand and constrained supply – according to Zoopla’s quarterly Rental Market Report.
It reveals that rental performance outside London was driven by a 59% rise in demand during April compared to the same month in 2017-19.
It says Covid’s impact was felt most acutely in city centre rental markets where stock moved over from short-term lets and more rental stock came back to the market amid easing demand.
Rents are still down by 0.7% in Leeds, -1.1% in central Manchester, -3.2% in central Edinburgh and -9.9% in inner London.
Soaring demand
But the city centre downturn is starting to reverse as the economy opens up; renter demand was up 26% in central Edinburgh, 12% in central Leeds, 7% in inner London and 5% in central Manchester in the month after Easter.
Zoopla says demand in the capital is being fuelled partly by a sharp improvement to affordability, with rents down -9.4%.
Agents are reporting an increased number of longer-than-average tenancies – in excess of 12 months – being agreed.
Chestertons says demand is so strong that some properties are being let off-market, while those that have been listed, secured new tenants within two weeks and often after just one viewing.
Rental property supply in most markets is failing to keep up with demand.
The number of properties bought using a buy-to-let mortgage was 45% lower in 2020 than in 2015, and the number of homes in the sector has fallen slightly since 2016 as landlords rationalise their portfolios in the face of tax changes and additional regulation.
Zoopla’s head of research, Gráinne Gilmore (left), says: “Demand will continue to rise in city centres as offices start to re-open and this, coupled with increased affordability levels in many cases, will start to counter the negative pressure on rents seen over the last 12 months.”
Read more: London’s rental market due a revivial.
©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – BOOM! Rental market activity jumps as Covid rules relaxation prompts city revival | LandlordZONE.
View Full Article: BOOM! Rental market activity jumps as Covid rules relaxation prompts city revival
Post comment
Categories
- Landlords (19)
- Real Estate (9)
- Renewables & Green Issues (1)
- Rental Property Investment (1)
- Tenants (21)
- Uncategorized (11,917)
Archives
- December 2024 (44)
- November 2024 (64)
- October 2024 (82)
- September 2024 (69)
- August 2024 (55)
- July 2024 (64)
- June 2024 (54)
- May 2024 (73)
- April 2024 (59)
- March 2024 (49)
- February 2024 (57)
- January 2024 (58)
- December 2023 (56)
- November 2023 (59)
- October 2023 (67)
- September 2023 (136)
- August 2023 (131)
- July 2023 (129)
- June 2023 (128)
- May 2023 (140)
- April 2023 (121)
- March 2023 (168)
- February 2023 (155)
- January 2023 (152)
- December 2022 (136)
- November 2022 (158)
- October 2022 (146)
- September 2022 (148)
- August 2022 (169)
- July 2022 (124)
- June 2022 (124)
- May 2022 (130)
- April 2022 (116)
- March 2022 (155)
- February 2022 (124)
- January 2022 (120)
- December 2021 (117)
- November 2021 (139)
- October 2021 (130)
- September 2021 (138)
- August 2021 (110)
- July 2021 (110)
- June 2021 (60)
- May 2021 (127)
- April 2021 (122)
- March 2021 (156)
- February 2021 (154)
- January 2021 (133)
- December 2020 (126)
- November 2020 (159)
- October 2020 (169)
- September 2020 (181)
- August 2020 (147)
- July 2020 (172)
- June 2020 (158)
- May 2020 (177)
- April 2020 (188)
- March 2020 (234)
- February 2020 (212)
- January 2020 (164)
- December 2019 (107)
- November 2019 (131)
- October 2019 (145)
- September 2019 (123)
- August 2019 (112)
- July 2019 (93)
- June 2019 (82)
- May 2019 (94)
- April 2019 (88)
- March 2019 (78)
- February 2019 (77)
- January 2019 (71)
- December 2018 (37)
- November 2018 (85)
- October 2018 (108)
- September 2018 (110)
- August 2018 (135)
- July 2018 (140)
- June 2018 (118)
- May 2018 (113)
- April 2018 (64)
- March 2018 (96)
- February 2018 (82)
- January 2018 (92)
- December 2017 (62)
- November 2017 (100)
- October 2017 (105)
- September 2017 (97)
- August 2017 (101)
- July 2017 (104)
- June 2017 (155)
- May 2017 (135)
- April 2017 (113)
- March 2017 (138)
- February 2017 (150)
- January 2017 (127)
- December 2016 (90)
- November 2016 (135)
- October 2016 (149)
- September 2016 (135)
- August 2016 (48)
- July 2016 (52)
- June 2016 (54)
- May 2016 (52)
- April 2016 (24)
- October 2014 (8)
- April 2012 (2)
- December 2011 (2)
- November 2011 (10)
- October 2011 (9)
- September 2011 (9)
- August 2011 (3)
Calendar
Recent Posts
- Landlords could pay tenants up to two years’ rent for failing Decent Homes Standard as PBSA is exempt
- Landlords’ Rights Bill: Let’s tell the government what we want
- 2025 will be crucial for leasehold reform as secondary legislation takes shape
- Reeves inflationary budget puts mockers on Bank Base Rate reduction
- How to Avoid SDLT Hikes In 2025