Rental market update – June

For agents and landlords in the residential lettings market, the busy season is approaching. Tenant demand is rising substantially.

Analysis by Dataloft of tenancy start dates based on data from the past 5 years indicates the market starts to accelerate in June, with nearly one third of all tenancies starting between July and the end of September. With an estimated 569,000 students living in private rented sector in 2020, student properties will account for a significant portion of these tenancies starting.

The demand for rental properties increased significantly in the three months to April according to RICS, however new instructions for residential properties remain low, supporting rental price growth. Student homes have seen the opposite affect. A drop in international student numbers due to the uncertainty of travel because of Covid-19, and many UK students still waiting to make decisions based on the announcement of on campus learning, there are a significant number of student properties still available for the next academic year. We are optimistic that first year student numbers will increase this year, thanks to many deferring for a year in 2020 and both universities investing into increasing student enrolments.

Renters stay, on average, 18 months in their rental homes, 6 months longer than the average length of lease that they sign up for (12 months).

Older renters are likely to stay in their rental homes for longer and there is a steady upward trend in tenancy length by age bracket. Those in their 40s stay twice as long as those in their 20s. Meanwhile, 10% of moving renters had been in their previous home for 5 or more years. Using Dataloft Rental Market Analytics data, we have been able to investigate average length of stay of moving renters (renters starting new tenancies and previously living in rented accommodation).

Affordability, outside space, study space and broadband are priorities for renters. 87% of tenants are keen to know running costs and 79% broadband speed prior to viewing a property.

(Dataloft, Property Academy 2020).