While there is still high demand for rental property, we know some landlords are re-evaluating what their next step should be. If you are contemplating selling your rental property, you aren’t alone. Information provided by the National Residential Landlords Association (NRLA) offers insight into what landlords think about the current market:
· 30% of private sector landlords have expressed their intention to sell at least one property in the next 12 months
· 16% of landlords expect to but at least one property in the next 12 months
· 35% of buy-to-let investors say they have experienced greater demand from tenants in the most recent three months
· Close to 66% of landlords say their rental business has been negatively impacted by the COVID-19 pandemic
· 18% of landlords say the pandemic had a significantly negative impact on rental property
· The NRLA estimates private sector rent arrears in England, relating to COVID-19, stands at £437m
· The NRLA believes while rental demand is greater, the increase in rent arrears and other rising costs has left many landlords considering their position
At Hunters West Hampstead, we are perfectly placed to help you. If you are looking to sell your rental accommodation, we can arrange a property valuation for you. However, if you are looking to review all your options, we can help too.
There is still high demand for rental property
The level of demand for rental property has been shown in research conducted by Paragon Bank. They spoke to more than 700 landlords, with help from BVA BDRC, and found 29% of landlords said they had experienced increase tenant demand in the three months leading to the end of September 2020.
This is the highest growth since Q3 of 2016. 10% of landlords said they had experienced “significant growth”.
Tenants are looking for rental options
New research carried out on behalf of Paragon Bank has revealed that during Q3 tenant demand hit a four-year high, with landlords in the North West and South West reporting the strongest levels of growth.
Richard Rowntree, Paragon Bank Managing Director of Mortgages, said: “The record levels of tenant demand we saw being reported by the likes of Rightmove and Zoopla when the housing market reopened in May has started to feed through to landlords as tenants reassess where and how they want to live.”
Richard also said; “Central London is clearly seeing the impact of Airbnb style landlords moving property into long-term lettings, as well as a desire for larger properties. Outside of London, demand is buoyant from the East of England, where 27% of landlords are reporting growth in demand, to the North East and South West, where nearly half of respondents are telling us they are seeing positive growth.”
Richard concluded by saying; “We expect this to continue for the foreseeable future and there’s a number of factors we’re seeing at play. For example, there’s been growth in homeowners taking advantage of strong prices and selling to move into rented, people are looking to secure a new home ahead of entering a potential second lockdown, whilst students left it late to secure property for the new academic year.”
If you need any help or guidance regarding property matters, please get in touch. As your local housing market specialists, we will do what we can to ensure you make your next house move in style. Contact Hunters West Hampstead today for all your housing and letting needs.