Renting has never been so popular, we look at why
With property prices soaring and the younger generation more focused on experiences rather than consumption of goods, renting has never been more desirable. New research suggests even those renters who want to buy a property are likely to remain in the lettings sector for the foreseeable future. (1)
James Catlin FARLA, Worthing Lettings Manager, reveals which factors are driving the surge in rental demand that we have experienced in West Sussex over the last year, as well as looking at which property features are top of tenants wish lists and why.
“We’ve noticed a distinct increase in the level of demand for properties locally. When comparing our Rightmove enquiries for rental properties between January 2020 and January 2021, there’s been almost a 400% increase! This year, we have seen a large decline in the number of rental homes coming onto the market. Potential tenants are being presented with less choice, which is resulting in rental increases and allowing landlords to extend tenancy agreements to a minimum of one year”. – James Catlin FARLA, Worthing Lettings Manager
James also goes on to disclose a number of the factors that are contributing to this increase in demand;
Relocation from cities
Many people are moving out of London and the surrounding cities craving open space and to be closer to the sea and South Downs. As the media (2) reports, due to Covid19 remote working has become ‘the norm’ and it seems that some level of remote working will continue even when the pandemic is over.
Increased property prices
Due to the recent extension of the Stamp Duty Holiday, house prices have continued to rise, creating a sellers’ market and making it increasingly difficult for buyers to afford larger deposits. This has resulted in many tenants putting their plans on hold and extending their tenancy agreement.
People’s requirements have changed. With lockdowns and related restrictions in place over the last year, it is probably no surprise that according to Rightmove (3), properties with gardens, sea views and balconies have all seen an increase in demand throughout the same period.
Bang for your buck
As more and more people move to the south coast and demand for property continues to grow, rental prices have increased. Families and growing households in areas such as Brighton are finding that they need to move along the coast to get the extra space that they need at the rent that they can afford. Being a favourable but slightly cheaper area, this has resulted in further demand for properties in Worthing.
Tenants are currently more likely than ever to remain in rental accommodation for longer. A recent study by mortgage lender Vida stated that more than a quarter of renters have had to push back their hopes of buying their own property due to the pandemic reducing their income and 27% have had to dip into savings that could have been used to help them buy a home of their own.
With the potential of thousands of pounds in tax savings to be made, higher rents and increased demand for properties, it seems like a good time to become a first-time landlord or for investors to expand their portfolio.
Get answers to your property questions
If you would like any further information or advice on the current lettings market or if you’re interested in discussing our letting services in further detail, you can contact James Catlin and the team on 01903 213111 who will be happy to discuss your requirements.
Content accurate at time of publishing.