Rightmove has just reported its busiest New Year ever, with visitors to the site up by 30% compared with last year. This surge of activity in the UK rental market shows that the latest lockdown hasn’t dented buyers’ and renters’ enthusiasm for moving home.
For our Head of Lettings, Matt Station, it’s further proof of the resilience of the London lettings market, which has remained relatively strong throughout the pandemic. In this short video, he explains why, despite several lockdowns, Londoners continued to rent new properties last year.
Intense competition affects London lettings
One of the challenges landlords faced in 2020 was an increase in the availability of rental properties resulting from a temporary collapse in the short-term rentals market. At a single stroke, the pandemic robbed London of thousands of tourists and business travellers who would typically spend several weeks or months in London. Landlords who had previously offered short-term gains through Airbnb and specialist agencies were forced to switch to long-term rentals.
This naturally led to increased competition, and throughout the year, we have seen rental property prices dip. Over the past three months (October to December 2020), there has been a -1.9% change in house rental prices achieved.
In the video, Matt points out that despite a rise in the number of rental properties, the fundamentals of the London lettings market have remained strong. He observes: “People are deciding to have families, changing jobs, changing locations, so the rental market has been somewhat protected by that.”
Agents adopt new protocols
Matt is impressed by how the lettings market has evolved to cope with the ‘new normal’ of life under pandemic restrictions. Agents have introduced robust safety protocols for viewings, to protect both tenants living in the property and clients arriving to view it. But the apparent change has been the use of walkthrough videos and video conferencing tools to showcase rental properties, cutting down the number of physical viewings required.
Tenants’ changing needs
The lockdown restrictions have led to changes in the features renters look for when shortlisting properties to rent in London. Matt says that properties with work from home space and outdoor areas have grown in popularity, adding that he and his lettings team have successfully adapted to find homes that meet clients’ changing needs.
What can we expect this year?
As the Covid-19 vaccination programme rolls out across the city, it is hoped that at least some elements of life will begin to return to normal. Meanwhile, the lettings market looks strong at the start of 2021 and London letting agents remain busy as lower rental prices attract more tenants to central areas.
New Year is traditionally a time when people feel the need to make a change. And after a harsh winter of restrictions, Rightmove’s January browsing statistics confirm that many of us are longing for a fresh start. If you are letting a London property or considering a home move, why not call us at Berkshire Hathaway HomeServices Kay & Co?
