What’s behind the rise in the rental market?
When the UK went into lockdown in March, the housing market came to a standstill. Both renting and buying were pretty much out of the questions, with tenants and homeowners staying put until things got back to normal. By the end of May, the market was beginning to open up once more. Suddenly renters and buyers decided they wanted to up sticks and make a move.
This caused a surge in demand with millions of people hunting for a new home at once. As @HomesProperty says, “The “lockdown effect” on the housing market has led to property portal Rightmove reporting its busiest day on record on Wednesday May 27, with more than six million visits to its listings, an 18 per cent increase compared to the same Wednesday a year ago.” So what’s behind this rise in the rental market? We decided to find out.
The lockdown effect
During the lockdown, millions of Brits spent more time at home than ever before. This gave a lot of people the chance to think about their properties and decide if their current accommodation still met their needs. For many people, the answer to this was a resounding no. While some decided they needed more space or a garden, others wanted to relocate completely. When the housing market reopened at the end of May, people who had been thinking about a move suddenly had the chance to start their search. This resulted in millions hitting the internet at the same time.
Another lockdown looming
Another reason a lot of people are trying to move now is that many believe another lockdown is looming. Those who want to move to a larger house, or move to another location, want to find a new property and get settled before new restrictions are put in place. This has added a sense of urgency to many house hunts. Tenants are more likely to make snap decisions about a property and move in as soon as possible after finding a home. This is all good news for landlords who are seeing record demand for properties in many corners of the country.
Supply and demand
Since lockdown was introduced, a large number of Brits have been working from home. A lot of companies plan to continue remote working even after lockdown is lifted, giving employees more freedom over where they live. This has led to increased demand for homes in rural and coastal locations. Smaller towns and cities in and around London have also seen a surge in interest, as people look to avoid the premium rents and bijous accommodation of the capital. For landlords with property in these types of locations, the rise in interest is likely to result in increased income, something that is particularly welcome in this uncertain economic climate.
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