New Priorities In Rental Market
24th November 2020 posted in Property News Landlords Tenants
Priorities have changed for over a quarter of tenants following the pandemic, according to The Property Academy Tenant Survey 2020, which features the views of more than 14,000 tenants. The findings of the survey indicate that priorities have changed for more than a quarter of tenants have shifted since the beginning of the pandemic.
This shouldn’t be a surprise. There has been a considerable level of focus on the shifting demands from buyers in the housing market, and tenants are going through the same situation.
We speak with landlords and tenants
At Hunters Forest Hill, we know the local lettings market very well, and we speak regularly with landlords and tenants. We know what tenants want, the challenges they face, and what landlords should do to assist their tenants.
Some of the most pressing highlights of the findings include:
- 68% of tenants say affordability has become more important now than it was before the lockdown period
- Having access to a garden has been cited as more important than now, than before, by 67% of respondents
- With remote working on the up, it is no surprise to learn 63% of respondents have said broadband speeds are more important now than they were pre-lockdown
- 61% of tenants said having space to work was more important than it was pre-lockdown
Most of these new demands and preferences are logical, and in line with the main housing market. Even though there are fundamental differences between buyers and tenants, there are still many similarities. Cost, space and functionality will always matter to people, and this latest information bears this out.
Therefore, landlords should consider these priorities, and if it is possible, make changes to their rental property in a way that will assist tenants to appreciate the rental property more.
Remote working is here to stay, and tenants need dependable broadband connections
One way a landlord could make tenants feel more at home is to assist in installing fast broadband at the rental property. Sometimes there is a need to make an initial investment in up-to-date broadband technology to enjoy the best speeds at home.
A tenant is likely to be unwilling to make an investment if they see themselves only staying in the property for the short-term. However, if a landlord recognises the importance of high-speed broadband, and meets some of the cost or inconvenience, the rental property becomes more attractive to tenants.
David Keating the Group Security Sales Director at Data Solutions, said; “There is still a huge amount of indecision about the future, as seen by the fact that 43 percent of organizations have not communicated their plans to staff in terms of returning to the office. This really needs to become the focus now. While uncertainty remains in some respects, what is certain is that the normal we once knew is gone for good. Moreover, the new way of working that is being widely discussed needs to be enacted now with a well-thought-out strategy, proper investment and clear communication.”
Similarly, if a landlord offers office furniture as part of the rental process, some tenants might be more inclined to appreciate what is on offer.
South East London rental market
In information provided by Realyse, rents in the South East of London have increased in the past 12 months, and at the time of research, stood at £1,615 per calendar month. With property prices in the area, the area offers an average yield of 4% which is less than the national average of 4.7%
The same study suggests that in the past year, more than 55,000 new rental properties have been placed on the local lettings market.
A quick overview of the rental market in South East London can be seen below:
- Median Asking Rent, stands at £1,615 which is an increase of 1.5% on the previous years’ figures
- Total Listings stands at 55,085, which is a decrease of 16% on the previous years’ figures
- Rental £/sqft stands at £29 which is an 0.8% increase on last year
- The Median Yield is 4.0%, which is an 0.8% rise on the previous year
While it is handy to have an overview of the local market, we can provide you with tailored guidance and support for the Forest Hill rental market. Of course, we also operate in areas such as New Cross, Peckham, Dulwich and Brockley. If you are a landlord in any of these areas, or you are looking to let property in these areas of South East London, we can help.
If you are looking for South East London yield figures for benchmarking purposes, this information from Realyse should be of benefit:
- For studio property stands at 4.4%, which is a rise of 5.1% on last year
- For flats, the gross yield is 4.3%, and this is a rise of 2.9%
- For terraced properties, the gross yield is 4.0% and this is a rise of 3.7%
- For semi-detached properties, the gross yield stands at 3.7% and this is also an increase of 3.7%
Anyone looking for guidance on the current asking rents in the South East of London will find this information from Realyse to be of interest:
- For studio properties, the current asking rent stands at £1,035, and this represents a rise of 3.9%
- For flats, the current asking rent stands at £1,545, and this represents a rise of 1%
- For terraced properties, the current asking rent stands at £1,980, and this represents a rise of 3.2%
- For semi-detached properties, the current asking rent stands at £1,915, and this represents a rise of 2.2%
At Hunters Forest Hill, we know letting 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.