Angels Sales & Lettings
Landlords – now is the perfect time to let your property
07 September 2020 1158 Views
With activity in the market continuing to rise and the number new tenancies back to pre-pandemic levels, landlords are enjoying strong demand from tenants.
In fact, the number of new prospective tenants reached a record high in July, according to ARLA Propertymark’s July Private Rented Sector (PRS) report.
Below, we analyse how the rental market has fared since lockdown and what this means for landlords operating in London.
July a golden month for supply and demand
Demand from tenants hit the highest number on record in July, with the average letting agent branch registering 97 new tenants. This is up from 79 on average in June and smashes the previous record of 88 in January 2020.
The report found the number of rental properties available in July also rose, reaching an all-time high of 208 properties managed per letting agent branch on average – up from 200 in June and topping the previous record of 192 in 2017.
July saw the average tenancy length hitting a record high, with tenants staying in their properties for 21 months on average.
Rents on the rise in London
A separate report from The Deposit Protection Service (The DPS) revealed that tenants paid on average £782 per month during Q2 2020 – an increase of 0.90% on Q1 2020 and 1.56% more than Q2 2019.
Rents across all property types also rose during Q2 2020, with terraced property rents increasing the most, from £725 in Q1 2020 to £739 in Q2 2020 (+1.93%).
In London, monthly average rents remained at £1,345 for the past three consecutive quarters. Excluding the capital, however, the average monthly rent across the UK was £808 – up by 1.8% on last year.
In Greater London, average monthly rents reached £1,611, a 1.8% rise on £1,583 the previous month.
How does this benefit landlords?
From the above findings, landlords can look forward to an increased appetite from prospective tenants as the market slowly returns to normal.
This rising demand means more competition for rental property, which will allow landlords to let quicker and for a higher rental price. With a wider pool of potential tenants to choose from, landlords can ensure that they choose the best fit for their property.
Now that more renters are searching for their next home, there is a higher chance that they will be willing to stay for a longer period. Long-term tenancies can help to reduce the fees of finding new tenants, which will lead to shorter void periods and regular income.
For more help and guidance through your lettings journey, including how to maintain your rental property, our team at Angels Sales & Lettings can assist you. For more information, please get in touch with us today.
If you wish to see how much rent you could be charging each month, you can request a free and instant online valuation.
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