2^nd October 2020

Demand for rented properties continues to grow

ARLA Propertymark’s latest PRS report reveals that the number of potential new tenants grew again in August, and in fact reached an all-time high. A typical letting agent branch registered 101 new tenants, an increase of four over July, while the number of available properties remained static. Another record was recorded in August with the length of tenancy extending to an average of 21 months, and 48% of agents reported landlords increasing rent, a drop of 25% compare to August 2019.

Add to that the continuing challenges posed by Covid-19 and the potential slowing of the housing market in the light of increased restrictions, and rental property could potentially be at a premium. Zoopla is forecasting that the percentage of homes bought by first-time buyers in the UK looks set to drop for the first time in five years. In 2019 the percentage stood at a ten-year high of 34.9% but in 2020 that figure is predicted to be closer to 33.9%. The Covid-19 pandemic, an impending recession and the withdrawal of high loan-to-value mortgages have all had an impact, with lenders becoming more cautious and first-time buyers being more nervous about committing to mortgage repayments in the midst of increased uncertainty about their future employment.

As Andrew Ward, owner of Award Property Management, explains, in the current climate it’s vital that letting agents, landlords and tenants all work together to build strong relationships. ‘As experienced letting agents in Cambridge, we’re used to seeing fluctuations in the market but this situation is unprecedented,’ comments Andrew. ‘We see our role very much as working with both our landlord clients and our tenants to create harmony. We clearly focus on maximising return on investment for our landlords, but not at the expense of the interests of the tenants - the happier they are, the longer they’re likely to stay, which benefits everyone. We pride ourselves on our excellent communication, and that means that there are rarely any nasty surprises for anyone, and that is also reflected in our excellent occupancy and renewal rates. Not only that, we collaborate with our landlords to ensure that rents are fair for the size and location of the property because we want tenants to feel that they are able to stay with confidence for the long term.’

Award Property Management are letting agents in Cambridge, so if you need help or advice with any aspect of the rental market, why not get in touch? We’d be happy to hear from you.