Landlords struggle with low tenant demand in some areas

Landlords struggle with low tenant demand in some areas

0:02 AM, 4th July 2024, About A week ago 1

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Low tenant demand is causing problems for letting agents and landlords in some parts of the UK, according to new data.

While the national picture suggests a healthy rental market, with 78% of properties occupied, there are huge variations by postcode.

Research by tenancy deposit alternative Zero Deposit found incredibly low turnover rates in some areas.

In Leeds, the postcodes LS3, LS4, and LS6, for example, have just 10-11% of rental properties currently occupied.

‘Rental properties are in high demand’

The firm’s chief executive, Sam Reynolds, said: “For the large part, rental properties are in high demand, but as with all aspects of the property market, this metric can differ drastically from one postcode to the next.

“Tenants are able to be more selective and it’s unsurprising there are growing instances of late-stage dropouts where a superior property becomes available.”

The postcodes in Leeds aren’t isolated cases as others, such as Nottingham (NG1), Gwynedd (LL57), Plymouth (PL6), West Lindsey (LN2), Rhondda Cynon Taf (CF37) and Warwick (CV31), are also experiencing low rental turnover.

The rates range from 15% to 20%.

This patchy tenant demand creates a challenging environment for letting agents.

While some agents boast waiting lists and rapid lettings, others struggle to fill vacancies.

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Sam Reddi

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17:22 PM, 4th July 2024, About A week ago

Some councils have properties in thousands to be let out, so it reduces demands for the private lettings.
In addition council properties are lower in rent and less restrictions, where as private ones have more restriction and higher rental values. So its not that the the demand is less for renting, the actual fact is that the council have properties available for letting.

Example- In London it is next to impossible to get a council property so they have reached out to private landlords to let them the property and pay the ongoing rates. Because of scarcity the demand is high in other parts.

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