Renting demand increases

Across the UK by region and price band, demand for rented homes has surged by 30% since 14 April 2020, suggesting the rental market is regaining momentum, according to the latest Rental Market Report.

This follows an initial decline of 57% in the two weeks to 30 March, driven by the coronavirus crisis. In the same period, the sales market was hit by a 70% decline in buyer demand.

There has been no mass withdrawal of properties listed to let, as the total number of properties listed as available remains broadly unchanged, down just 3% compared to 1 March.

The research also found that the number of moves per year in the lettings market is expected to drop by 25% in 2020 compared to 2019.

Rental supply has increased ahead of the lockdown as landlords switched from the short to the long-let market, but growth in new supply has since slowed.

Annual rental growth in the UK stands at +2.4%, up from +1.5% in March 2019; rental growth is expected to moderate over the rest of the year but remain in positive territory.

City-level annual rental growth ranged from +5.9% in Nottingham to -2.1% in Aberdeen.

Annual rental growth in London is running at 1.7%, down from 2.3% in the previous quarter, but broadly in line with the same period in 2019 (1.8%). Excluding London, the most popular price band tenants are engaging with online across the UK is £500 to £600 per calendar month; this is consistent with trends before the impact of COVID-19.

If you would like to know more about a new or re-mortgage or options available please do make contact and one of our independent advisers will be happy to assist.