Current State Of Rental Market
1st October 2020 posted in Landlords Tenants
With so much focus on the stamp duty holiday and the housing market, we appreciate many landlords and tenants feel forgotten about right now. At Hunters Forest Hill, we support local landlords and tenants.
If you are looking for an effective property management service, or you need guidance in letting in or around Forest Hill, we can help.
Not only do we know the local market, we stay in touch with the national market, and the latest research. If you want to make an informed decision, we are here to assist you.
Many landlords have suffered since lockdown
Hamilton Fraser have conducted research with 1,200 landlords, highlighting the issues many landlords have endured since lockdown. 43% of landlords say tenants have informed them they will struggle to pay rent. 49% of landlords have received full rental payment.
For landlords who haven’t received full rent, Hamilton Fraser’s research suggests:
- 27% of landlords have received at least three-quarters of rental fees but not full rent
- 9% of landlords have received something but 50% or less than the rental fee
- 15% of landlords have received no rental payments at all
The study also revealed 75% of landlords who have been contacted by tenants citing problems, 75% have agreed a solution. Solutions include payment holiday, rent reduction or a payment plan.
Landlord confidence is falling
As the pandemic continues to stifle “normal activity”, there is a fall in confidence from landlords. Many landlords have informed Hamilton Fraser they will be unable to support tenants who are unable to pay in full over a longer time-frame.
23% of landlords have informed Hamilton Fraser they are considering selling a rental property before the stamp duty holiday deadline of 31st March 2021.
Paul Shamplina is the Brand Ambassador for Hamilton Fraser, and she said; “Given the severity of the circumstances and rising unemployment, it’s no surprise that more than 50% of tenants have been unable to pay their rent in full or at all. However, it is clear that the vast majority of landlords have done everything they can to offer support and sustain tenancies. The question is how long can that last for?”
There is some optimism in lettings market
There has also been a study from Goodlord, who spoke with 350 letting professionals. Highlights of their findings include:
- 80% of respondents felt “positive” about the industry, which is a rise of 50% compared to figures at the start of the year
- Only 2% of respondents cited Brexit as a leading concern, which is perhaps an indicator of more pressing matters
- With 47% of respondents citing the COVID pandemic as their most pressing concern, this is an area where landlords and letting professionals need assistance
Goodlord COO, Tom Mundy, said: “We’ve always known that the lettings industry and those working in it are incredibly resilient. But the last six months have proved that they can weather the most intense of storms.”
At Hunters Forest Hill, we know selling property is challenging, but we are here to assist you in the process. If you aim to buy, sell, let your home or rent property, we are active in New Cross, Peckham, Dulwich and Brockley, in addition to Forest Hill, so get in touch with one of the top three agents in London, and we will be happy to assist you.