May 2021 - Market Update
The availability of letting properties on the rental market has been constricted during lockdown. Proptech company Goodlord's most recent snapshot of movement within the market has indicated an uptick in the number of tenants starting to move. This movement within the market appears to be being driven by the relaxing of the latest lockdown across the UK.
This is positive for Landlords and Tenants alike, although it is true that new Landlords to the market have seen unprecedented yields due to tenant competition for the few available properties in any given area, these levels are unsustainable over the long term. It has always been a fact that a supply and demand based market such as in property will self correct over time.
Likewise in the recession of 2008/2009 the rental market was flooded with properties that were unable to sell and by extension rents were significantly reduced. The opposite is true currently. It will be positive for Landlords who have had long standing tenants that are now moving that they will be able to achieve an increase in rent upon relet.
All of the above highlights the significance of the interplay between sales and lettings markets in the property sector. A further factor that has kept properties away from the rental market is the oft extended stamp duty holiday. This has driven a buoyant but unsustainable sales market for the past year.
The overall takeaway from all of this is that, to state the obvious, balance is good. Its good for everyone involved over the long term. The great news is that we appear to be on the way to a more balanced and less frantic property market in the months to come.
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