As a landlord, it is vital you know what matters to you, and how you can best achieve your aims and goals. However, you also need to know what tenants are looking for from you.
At Thomas Morris, we work hard to ensure landlords connect with tenants, and provide a service that tenants are looking for.
We also stay in touch with the latest studies and reviews in the market, which ensures you make an informed decision at all times.
What do you hope to achieve in the market this year?
A study involving 1,700 tenants and 550 agents has delved into what people think about the rental market.
What concerns agents?
It is helpful to know what concerns agents have, and the study found:
43% of agents believed legislation was the critical factor in landlords leaving the industry
32% of agents cited a lack of stock as their chief concern
32% of respondents said legislation and compliance was their largest concern
27% of agents said they are making “winning new landlords” their top priority
83% of respondents say they have witnessed landlords leaving the sector in the past 12 months
64% of respondents believe more landlords will exit the market this year
Close to half of the agents who responded said more than 5% of their landlords left the industry in the past 12 months
14% of agents said around 10-19% of their landlords had left the industry
Legislative matters to consider
There is no denying legislation matters in the rental sector, and there are some strong opinions:
38% of tenants believe the repeal of Section 21 will lead to a “major and positive” impact on the private rental sector – however, only 8% of agents agree with this
30% of agents believe the repeal of Section 21 will have a “major and negative” impact on the private rental sector
43% of tenants are very optimistic about the introduction of lifetime deposits, and the impact they will have, a view shared by 17% of agents
26% of agents believe lifetime deposits will not have a positive or negative effect on the market
Tenant optimism remains strong
6% of tenants say they remain concerned about the pandemic, and its impact on their ability to pay rent
This is a fall from 12% of tenants expressing concern about the pandemic impacting their ability to pay rent when questioned in September 2020
4% of tenants said they missed some payments or set up a payment plan
81% of tenants said the pandemic didn’t impact their ability to pay rent, which is an increase on the 75% who said this last year
24% of tenants said they had been furloughed in the past 12 months
75% of tenants believe their income is now secure
What next for tenants?
54% of tenants said they would not expect to own property or weren’t sure if they would own property in the next 5 years
46% of tenants said they didn’t expect to own property within five years
16% of tenants said they had considered a move, or had moved, because of Covid in the past 12 months
80% of respondents who had moved to a different area in the past year because of Covid doesn’t intend to move
Tom Mundy, a well-known name in the rental market, said; “This report paints an encouraging picture for the industry. Key signs of recovery can be seen in the arrears data and tenant sentiments, and the majority of agents are still feeling optimistic about the future of the sector. Specific concerns around lack of stock and upcoming regulation are well-founded, but it appears that agents are becoming increasingly proactive in this regard. Sourcing new revenue streams, embracing technology, and streamlining processes are all gathering pace, as agents make their businesses fit for the future. After a year like no other, these insights offer a picture of a resilient, forward-thinking industry which is moving with the times and responding to major shifts in tenant demand and landlord behaviour with characteristic stoicism and professionalism.”
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.