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Good news for landlords – rental market shows no winter slowdown

New data from PropTech supplier Goodlord is likely to give a boost to landlords as their research has revealed that rental demand has stayed steady across the country.

This will be welcome relief for landlords potentially fearing a fall in income and a rise in voids over the festive period and beyond – with it appearing that the lettings market is still in full swing, despite winter and the ongoing challenges and obstacles caused by Covid.

What does the new data show?

According to Goodlord data’s, the average void period for a rental home in England remained at 18 days last month, which is the same as the average figure recorded for November.

As well as analysing void periods, Goodlord’s research also looked at rental prices. Its data found that the biggest increase was seen in Greater London, which documented a rise in prices of 2.2%.

Here at Holland Properties, we let properties within the Docklands area in Greater London. The data also uncovered that the highest rental price averages were found in Greater London (£1,671).

Rental stock supply

Although this may not be the best news for tenants, new data has shown that prime London boroughs have seen a large reduction in rental stock. The fall in rental stock can put landlords in an enviable position as there are fewer rental properties available meaning landlords will have the upper hand and greater competition amongst tenants.

Tower Hamlets, where we operate, has seen an annual decline of -77%. The reduction of rental stock in mid-winter is likely to be the benefit of landlords, giving them leverage when it comes to negotiating rental prices. While it’s important for landlords to stick to market rents, and to reward longer-term tenants where possible, the current conditions of the market could also make the winter a profitable one.

The lack of available rental properties has also been attributed as a factor in the rise of rents. The property website, Home, identified regions where rents have increased by 38% in the past 12 months. Home pinpointed Tower Hamlets as one of the boroughs which “lead the charge with annualised hikes of up to 38%, more than compensating for last year’s declines during lockdown.”

In November, Home said: “Our forecast is that prices and rents will continue to rise overall due to the vast amount of recent credit expansion. A significant loosening of supply in the near term appears unlikely, and any sort of significant mortgage rate hikes look impossible given the indebtedness of government and the private sector alike.”

High demand for London

As the lettings market has adjusted to a Covid-19 world, London’s appeal as the capital city has endured and rental demand still remains high. The capital city is still the epicentre of opportunities in the country as well as home to many universities, meaning many student tenants will be looking for somewhere to live in London.

In November, a lettings company witnessed demand for London rental properties increasing by almost 60% in the third quarter compared to the same period last year. Canary Wharf was cited as one of the most popular areas with tenants, with the increase in rental demand attributed to office workers and students returning to the capital as society reopened.

How to maintain properties in the winter

With evidence showing that winter doesn’t equal a downturn for the rental market, landlords may want to know how to keep their properties in good shape as it gets colder. Our blog post about protecting your property during the winter provides handy tips on how to keep your rental property safe as well as spic and span.

It’s more important than ever to keep on your toes in winter, when maintenance issues and problems with bad weather are likely to be more commonplace. It’s a good idea to partner with an expert local letting agent to ensure your tenancies go off without a hitch.

We have been an established estate and letting agent since 1999 and can help to manage your tenancies, allowing you to get the most from your rental properties as a result. We operate in Docklands and the surrounding areas including Surrey Quays and Rotherhithe.

For further guidance on any part of the lettings process, please contact us today. You can also request a free and instant online valuation to see how much rent you could be charging in the current marketplace.