9^th June 2020

Rental market sees boost with lockdown easing

It will come as no surprise that at the height of the Coronavirus lockdown, demand for rental properties plunged significantly. However, since restrictions have been eased, the need for lettings has increased by as much as 22%, according to property portal Rightmove.

The availability of rental properties can no longer keep up with demand and there are now fears that this will push up the cost of renting. As a result, there is concern that people may struggle to find a home due to demand outstripping supply. It reports that the South West has seen the biggest surge in people searching for rental properties - up a huge 34% on the same time last year - and the Cambridge market remains strong.

Since the beginning of the pandemic, people have been left with an urgent need for housing as well as there being a backlog of people who had plans either put on hold or cancelled altogether. A change in personal circumstances will also have led to this increase in demand, with rental websites recording their highest ever number of visitors. In fact, more people are now having to move to a new area to further their career, whether it be because they are changing jobs or have a specialism which means relocating to a specific part of the country.

Regrettably, of course, many people have lost their jobs during the pandemic and are urgently needing to look further afield or relocate permanently. In addition, many employees are now working from home - a scenario that may continue when lockdown has eased completely - and that has often led to them deciding on a change of scenery. Many have decided to make the move away from cities and built-up areas into the countryside or more rural locations.

Away from work, one of the negative side effects of lockdown has been that many relationships have not survived, and that has led to an increase in the number of single people searching for a new place to live.

Supply is struggling to meet demand, with many landlords leaving the rental market altogether due to the uncertainty over whether tenants will be able to meet rental payments. According to the Resolution Foundation, as many as one in eight renters are struggling with housing costs. Because of this, landlords are likely to pick those applicants with the best references and who are in a position to move in quickly. Those with a poor credit record are going to lose out and find it increasingly difficult to find a rental property.

Andrew Ward, owner of Cambridge-based Award Property Management, has also seen an increase in demand. ‘As letting agents in Cambridge we have been monitoring the effect of lockdown on the rental market,’ comments Andrew. 'Since lockdown restrictions have been eased we have certainly noticed the extra demand in our office and we are working flat out to meet people’s needs. Everyone is obviously very keen to move for a variety of reasons and we are working round the clock to help them. We would encourage anyone seeking to find quality rented accommodation in and around Cambridge to contact us in the first instance as we are here to help. And if any landlords are concerned about how to react to the changing rental landscape, we’d also be pleased to have a discussion with them.’

Award Property Management are letting agents in Cambridge, so if you’re looking for help and advice with any aspect of renting or the wider rental market, why not get in touch? We’d love to hear from you.