Demand starts to recover as more renters look at post...

Rents continued to increase during the first quarter of the year, owed in part to a lack of supply and increasing demand, the latest data reveals.

The Zoopla Rental Index, released yesterday, should leave many landlords with a long-term buy-to-let strategy feeling rather confident, according to Neil Cobbold, chief sales officer at PayProp.

There are signs that rental demand is already starting to recover, after plummeting in the second half of March.

“The bounce in rental demand after an initial drop-off shows that renters are starting to look at moving options for when the lockdown period ends,” he said.

Demand for rental property increased by 30% in the two weeks to 14th April, although it is worth noting that this hike comes off a low base following the impact of coronavirus, which saw a 57% fall in demand for rental housing in the two weeks to 30th March, according to Zoopla.

The impact of coronavirus has been negative, but it has been less pronounced in the letting market compared to the sales market, highlighting the fact that the rental sector is far more dynamic in comparison.

Cobbold added: “While it's positive to see that there has been no mass withdrawal of properties by landlords, the pause on sales and lettings activity may simply mean they don't have many other options.

“In light of this, measures like the Coronavirus Job Retention Scheme will be essential to ensure that landlords can continue to receive rent despite the financial pressures caused by the coronavirus pandemic.”

Want to comment on this story? Our focus is on providing a platform for you to share your insights and views and we welcome contributions.
If any post is considered to victimise, harass, degrade or intimidate an individual or group of individuals, then the post may be deleted and the individual immediately banned from posting in future.
Please help us by reporting comments you consider to be unduly offensive so we can review and take action if necessary. Thank you.

Matthew Payne
22 April 2020 14:13 PM

Hi Roy

Depends which side of Cambridge (I lived there for 20 odd years and still spend a bit of time there), property type and price, different agents focus in different areas, prices and property types.

Matthew Payne
23 April 2020 12:07 PM

Leaders are technically quite a strong agency, I have recruited many of their staff over the years, and as a business they have always been well regarded. If you want a selection just look on Rightmove for 3 bed houses between £1100 and £1350 including let agreed and it will show you who is active in that marketplace and doing deals, albeit at the moment that wont be many.

On prices, $64m question. In my view now is not a good time to sell. Low confidence in the market place with buyers, low demand for a whole mixture of reasons. It's a buyers market and I think will remain so for most of the year, so when the lockdown ends you will sell it, property always sells in any market, but you will have to compromise on price. If it was my house and I didnt need to sell it, I would rent it for another 12 months and take stock in a years time. When this is over the market will bounce back pretty strongly in favour of sellers, its just a question of when that will be which is anyones guess. That swings on vaccinations and so on, but I cant see things ending this year, 12-18 months feels about right from everything I have read.