At Thomas Morris, we are keen to support landlords as best we can, and we know there is significant demand for rental property. This is likely to be the case for some time, and it will definitely be the case as we move through the summer of 2021.
If you take a drop in void periods as being a positive thing for the rental market, you have cause for optimism right now.
Voids have fallen across England
According to analysis from one industry leader, in May 2021, voids fell in seven of the right regions they monitor in England. This means the average void period across the country fell by 15%.
Insight into particular areas include:
The West Midlands saw the largest drop, moving from 27 days to 18 days, lowering by a third
The South West of England experienced a fall of 18%
In Greater London, the drop in void periods was 15%
The East Midlands experienced a drop of 13% for void periods
The North East of England was the only area which included an increase in void periods
There has been little movement in the average rents across England, moving from £920 per month in April 2021 to £919 per month in May 2021.
There were modest rental fee increases in the North West, the North East and the South West of England
There were modest rental fee decreases in Greater London, the East Midlands, the South East and the West Midlands
No part of the country witnessed a rise or drop greater than 4% in May 2021
How well do you know your tenants?
Another factor considered in this analysis was the average income for tenants. This might be viewed as an indicator of the market, and how dependable tenants are likely to be.
The research found that in the six months to May 2021 in England, the average income for tenants rose by 8.2%. This indicates a bounce-back compared to the status of late 2020 and early 2021. In the capital and the North East of the country, two very different areas, tenants have experienced a 10% increase in take-home pay.
Tom Mundy is the chief operating officer of Goodlord, and he said; “We’re on track for a bumper summer of lettings. Whilst many agents have been busy with sales, the lettings market has been quietly gathering steam and now looks set to make things very busy for the rest of the summer. This time of year is always a busy period but the combination of increased consumer confidence, pent up demand, and what looks like a more normal year ahead for student housing, is on track to deliver a hugely successful season for the lettings market. Agents and landlords should make sure they’re prepared for this demand and ready to capitalise on it.”
If you are looking for help with any matter of the property or lettings market, it is best to speak to property professionals. You can book a sales or rental valuation appointment directly on line at a time and date of your choice by clicking here or alternatively click here for individual branch contact details.