One of the most frequently asked questions from people walking through the doors of our shopfront offices is “Do you have anything to rent?” The phrasing of the question indicates the level of supply of rental stock in the market. Prospective tenants are frustrated, going to door-to-do along the high street asking if agents have anything. Previously someone might have come in, taken a seat, and explained their circumstances and their requirements; three bedrooms? A driveway? A rear yard? They might be fortunate enough to discuss a couple of options and leave with some particulars or viewing appointments. Now though rentals are so scarce it makes sense to establish whether a firm has anything at all before exploring such frivolities. So, what’s going on?
“The race for space” – a much bandied about phrase from home movers and property professionals to describe the frenzied sales market following lockdown measures easing in mid-2020. Fired up by stamp duty incentives and healthy bank accounts from enduring a stint without holidays, hospitality, and the economic certainty to support most major purchasing decisions, the public quickly took to viewing and buying houses when there really wasn’t much else to do. Nothing focuses the mind on the shortcomings of your own home more than a period of government-ordered captivity.
While home buyers and sellers stole the limelight in regional and national press, tenants too were on the move. After all, why should the definition of your tenure dictate your requirement for a home office, a bigger garden, an extra reception room? With tenant fees abolished in June of 2019, the costs of moving for tenants is at an all-time low. You stop paying rent at one place and resume it at the next. There are removals to arrange, of course, and you may need to stump up a deposit in lieu of your previous one being released, but ultimately once all is said and done the
actual month in which you move won’t be much more expensive than your ongoing commitment in your new home.
As the sales market frenzy continues to gather momentum, stranded homesellers with show-stopping offers on the homes they are leaving find the same competitive environment less fruitful. When it comes to securing an onward purchase and start to look to the rental market for temporary accommodation. This provides a new pressure on the already supply scarce rental market.
On a regional level, as further restrictions are lifted, and some basic economic certainty is restored; the North East is fortunate enough to see some considerable investment. Amazon for instance opens fulfilment centres in Darlington, Durham, and Gateshead – with Gateshead alone creating an additional 2300 jobs. Widely discussed and reported on is the notion that people are moving ‘out of London and into [insert Northern city here]’ having realised they can get an awful lot more for their money when out of the city, and now being less reliant on the office as the world embraces WFH. Less airtime though is given to those moving from the likes of Manchester, Edinburgh, Liverpool seeking new opportunities or incentivised by their employer to up sticks. The HMRC for instance have recently struck a deal to move 9,000 jobs to Newcastle as part of a north-east regeneration scheme. Many of these people won’t ecessarily want the long-term commitment of purchasing a place and will look to the rental market for a shorter-term accommodation solution.
There will always be a requirement for rental homes. Buying a home is a big commitment, a big expense, and not fitfor-purpose for those looking for a slightly more temporary solution. But with myriads of new rules and regulations
facing landlords, stamp duty penalties for second home ownership, and the government ramping up efforts to facilitate home ownership, supply is restricted.
With demand escalating and limited supply, inevitably prices are on the increase. “Best and final bids” are not an unusual sight for sought-after lets, with asking prices at an all-time high and offers coming in even higher. So as a tenant, what can you do to secure somewhere in these unusual market conditions? If you need to rent somewhere, and wouldn’t/couldn’t consider purchasing, I’m afraid it’s just going to take a bit of patience. Register with agents and make your position clear with regard to availability of references and desired move-in timescales. Set up alerts on the property portals to react quickly to new listings that you may have missed. If you’re renting isn’t a prerequisite and you would buy if you could – speak to us. Our mortgage advisors are happy to chat through options and incentives that are available to first time buyers, and we’re soon to launch a shared ownership offering in the second hand homes market.
Do you have a home to let?
Contact Bradley Hall to book a free lettings appraisal.
www.bradleyhall.co.uk
