RENTING IS HIKING IN UK AMIDST PANDEMIC
The average void period for the UK rented properties has reduced on average from 19 to 17 days. The reason being is due to the upsurge in new tenancies in early March despite COVID restrictions and economic problems.
RENTING TREND IN THE UK
In March 2021, the UK experienced a spike in average rental yields as well as an increase in tenancies during the same period. This was the case for most regions within the UK, except for the South West, which recorded a decrease in average rental costs.
East Midlands, Greater London, North East, and North West recorded a 1% rental hike; Wales has the biggest rise at 5%, 4% increase in the West Midlands, and a 2% increase in the South East.
However, only the South West witnessed a 1% drop in average rental yields (the only decrease recorded).
During 2020, the Deposit replacement scheme Ome data reported 394,156 new tenancies under the mydeposits' insurance and custodial schemes in England and Wales, which is a rise of approximately 2% on the previous year (with 386,6027 new tenancies listed in 2019).
A YEAR-ON-YEAR COMPARISON OF THE NEW TENANCIES
1) There were 87,446 new tenancies in the first quarter of 2019 recorded, compared with 82,410 in 2020, showing a 5.8% fall during the beginning of the pandemic.
2) There was a more comprehensive division in the second quarter of 2019, with 82,436 new tenancies in 2019 in contrast with 68,121 in 2020. The 20% fall is mainly caused due to the nationwide disturbance of lockdown from March to May 2020.
3) There were 120,542 new tenancies recorded in the third quarter of 2019 and 145,733 new tenancies recorded in 2020. This development of over 20% can be connected to restrain interest in moving home, deadened during the first lockdown.
4) There were 95,603 new tenancies in the fourth and final quarter of 2019 compared with 96,092 in 2020.
The pandemic did cause a considerable disorder as the rental market was partly shut down in March, April, and May 2020.
Only 63,680 new tenancies were preserved with mydeposits. There was a 30% drop in contrast with 83,252 during the same period of 2019.
However, the situation for landlords and tenants seems to be reassuring and flexible in 2021.
PREDICITION FOR 2021
During the third quarter of 2019, mydeposits recorded 120,542 new tenancies, whereby in 2020, new tenancies recorded were 145,733 during the same period, indicating a 20% increase attributed to increased interest in moving home.
There is a rise in working from home, under government guidelines. Therefore, people choose the suburbs over big cities.
Rightmove, the UK's largest online property website, reported that city residents' inquiries for village locations increased 126% in 2020 June and July compared to the same period last year.
From 2020 June to August, the number of new tenancies rose by 22%.
FINAL VERDICT
A boom in the rental market will follow in 2021 as the Government keeps the private rented sector open, although compliance with COVID measures is still mandatory.
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