The latest figures tracking movement in the property market suggests the rental sector is set to improve and recover a lot more quickly than sales. Activity in the past few weeks has already shown some signs of improvement and this is a good sign for the sector as a whole.
The Letting Activity Tracker produced by Goodlord’s shows there has been an unexpected and considerable rebound in the rental market after a fall seen between March and April. Once lockdown was imposed in the UK in March, it was no surprise that the sector was impacted significantly. However, tides appear to have turned in June.
Goodlord’s data shows that the first day of June saw new applications rise above 2019 levels, to 111%. Tenancy applications have risen 82% compared to activity levels in April and this is a clear sign of market change and improvement.
Data from Goodlord’s further shows that completed applications were at 70% of 2019 levels and while it is never good to be lower than the year before, the impact of a global pandemic cannot be underestimated.
Rent Rates Grow in North East Area
The average cost of rent in England and Wales is £864.48 and this has remained remarkably steady as the market has had a general level of stability despite the world health crisis. The average cost has even gone up very slightly from April, a further positive sign.
In the North East, we were one of the areas where there was actually a slight rent increase and this trend were also seen in the East Midlands and Wales. In terms of other regions, prices held steady across the West Midlands, South West, and North West but there were drops in London and the South East.
Key to the increases was the void period experienced in different areas too. The average void period was an average of 23 days while here in the North East our void period was increased. The pace of market recovery seems to have differed significantly from area to area.
Speed of Move influencing Renters?
Since the housing market was unlocked and business could continue, demand for housing increased instantly and for some, maybe the need to move was more pressing than others. While rental may not be a permanent solution for all, it can be a quicker way of moving. Viewing a rental property and moving in can happen in a couple of days where properties are unoccupied and this relatively low-stress move with less paperwork and logistics may appeal to people looking for a quick move.
These positive signs from the rental sector are hopefully the sign of trend for the wider property market.
For advice and guidance on letting your property get in touch with our award-winning team, we here to help!