It is vital landlords pay attention to what tenants are looking for right now. There is a lot of information on offer in the market right now, and there is an opportunity for landlords to better understand what people want from them.
Dorian Gonsalves is the CEO of a leading estate agency, and he spoke about the changing nature of tenant demands. Landlords must familiarise themselves with what tenants are looking for right now, because if you can meet this demand, you increase your chances of success.
Dorian said; “The Q1 rental index was prepared for us by industry expert Kate Faulkner, who began by looking at a breakdown of rental trends by property type. The results confirm very different rental trends between flats and houses. Flats are not quite as popular as houses, particularly in areas where there is an oversupply. Most offices are predicting increasing demand for properties, with houses being more popular.”
What people want has changed of late
There is no denying the way we deal with the COVID-19 pandemic influences the way we think in the short-term. In the long-term, there might be more significant changes in demand for rental property, but most experts believe there will always be high-demand for this style of accommodation.
The rental market has been through many peaks and troughs in the past, and it will do so again. This is an industry that has proven itself to be robust, and capable of taking on many challenges.
Dorian also said; “People have experienced the benefits of being able to enjoy an outdoor space during lockdown, or indeed missed out on outside space, and demand for properties with gardens is predicted to increase. Demand for HMOs is likely to remain fairly stable or could fall. “
Demand is switching from flats to houses
One short-term change that has arisen in the housing market has been the switch in demand from flats to houses. This might be related to people looking for more space or the demand for having external space at the property.
Dorian explained this by saying; “A total of 53% of offices reported unchanged rents for flats in Q1, with just over 38% reporting increased rents compared to Q4 2019. On reviewing trends for houses, 50% reported static rents, and just over 44% recorded increases, with just 6% reporting falling house rents. Overall, demand for houses remains slightly stronger than for flats.”
You also need to consider the reasons people want to move home, and why these were likely to arise during the lockdown period. Dorian continued by saying; “All offices received tenant enquiries during lockdown, with the main reasons being due to a relationship breakdown, a need to downsize, or to obtain more outdoor space. The majority of tenants were looking for two-three bedroom properties. Essential house moves, and moves for key workers were allowed during lockdown and 88% of offices managed to conclude lets during this period. 12% of offices recorded no lets during lockdown. A total of 80% of offices surveyed reported that they had between 1 and 10% of void properties during lockdown, but the majority of offices are seeing a gradual increase in business now that restrictions have been eased.”
As an experienced letting agent serving the Bridgwater community, and many of the surrounding areas, we are here to help. We promise to stay in touch with the latest technology, helping our clients to achieve more, and we aim to support the local community as best we can. If there is anything, we can assist you with; please contact Andrew Lees Lettings today.