11:06 AM, 10th October 2022, About 12 months ago 1
One of the unintended consequences of the Government’s recent mini-Budget could be more demand in the rental market, says one leading industry figure.
That’s the view of Nicky Stevenson, the managing director of Fine and Country, who adds that with the prospect of rising interest rates, would-be purchasers may opt to ‘wait and see’, choosing to rent in the meantime.
She said: “There is little sign that the market imbalance that has epitomised the rental market in recent times is waning, as rents continue to rise across all regions of England and Wales.
“Zoopla reports that demand in the year to the end of August was over 140% higher than the five-year average, while the stock of homes for rent was 46% lower and the flow of new stock down 7%.”
Ms Stevenson says that with uncertainty in the economic markets and affordability concerns, many renters are choosing to extend tenancies or are seeking longer tenancy contracts.
She said: “According to a survey conducting by the Property Academy of over 6,800 renters, while nearly four in every five renters currently have a lease length of six to 12 months, 45% state their ideal tenancy length would be 19 months or more.”
She adds that the survey also revealed that renters are more likely to compromise on the specification of their property as opposed to affordability or location.
Ms Stevenson continued: “For younger renters and those living with friends, affordability is more important, however, for other ages and household types, location matters most.
“Pleasant neighbours, broadband speed, a parking space, garden and being close to amenities continue to top the wish list of renter priorities.
“These factors are considered more important than a recently redecorated property or one with new kitchen, bathroom, or carpets.”
Ms Stevenson also highlights that although most renters are happy with the current condition of their property, its condition is cited by nearly one third of renters who would not renew a current contract.
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