YRPS Insight: Edition Eight - Flipbook - Page 44
COVID-19 AND THE RESIDENTIAL
LETTINGS MARKET
Teresa Sargeant, Residential Lettings Manager, comments on how the
lettings market has been affected by COVID-19.
All aspects of our lives have been affected by the COVID-19 pandemic, and the way in which we live our lives has been entirely
turned on its head in particular. This is evident across all markets but is extremely apparent across the residential property sector.
Here, Teresa Sargeant, Residential Lettings Manager, comments on how the lettings market has been affected by COVID-19.
Tenants
When looking at the rental market on a year on year basis, enquiries have increased by 142% (1st Oct 2019-2020) at youngsRPS,
despite a global pandemic. In fact, if we look at our 2020 data – Feb 2020 prior to the pandemic, in comparison to Oct 2020 enquires have increased by 125%. But why is there such an increase in interest in the rental market?
The lettings and sales market work in unison; I work very closely with my colleagues in residential sales, and currently, we are
finding that because properties are generally selling quicker than expected, vendors are preparing to rent on a shorter-term basis.
Not only is this an excellent opportunity for vendors to ensure they are proceedable for buyers that want to make a quick move,
but it also gives them the opportunity to immerse themselves in a location before they commit to buying. This also works in
reverse. We are seeing clients that are relocating from the south – mostly due to employers being more open to them working
remotely – and they are willing to rent long term to ensure a relocation is suitable for their lifestyle.
Being able to work remotely has caused a shift in tenant demand. Commuting distance is no longer a priority for many people,
meaning that properties in more rural locations are more attainable. We are have seen an increase in demand for properties with
open air and gardens, as well as family homes in market towns.
At the time of writing, we are entering a second lockdown in England; what does this mean for tenants? From the 27th March,
the Government imposed a ban on all evictions so that tenants would not be forced out of their home if they were struggling
financially. The eviction ban was supposed to be in place until 25th June but was extended twice until 20th September. Upon the
introduction of ‘local tiers’, Bailiff trade bodies then agreed to not enforce evictions in tier two and three areas; we expect this to
be extended across England whilst the current lockdown is in place.
Landlords
Aside from the pandemic, 2020 has been a significant year for changes to lettings legislation, with many coming into fruition in
the first half of the year, for example:
•
Extension of the Homes (Fitness for Human Habitation) Act
•
Minimum Energy Efficiency Standards (MEES)
•
Capital Gains Tax
•
Extension of the Tenant Fees Act
•
Electrical Installation Condition Reports
Whilst this legislation is vital when protecting tenants against rogue landlords and a substandard of living, it can be difficult to
keep up with, and in many cases, understand; particularly when we also factor in a pandemic! Because of this, we are finding that
more of our landlords are requesting full management of their properties to ensure that they are fulfilling their legal requirements.
If you’re a landlord that requires advice, please get in touch.
Teresa Sargeant | teresa.sargeant@youngsrps.com
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