Crack open the champagne this New Year’s Eve – we have good news for you…
- A vaccine is on the way! At the time of writing, this was in the very early stages of being rolled out across the UK, and hopefully by the second half of 2021 we can start to put the coronavirus pandemic behind us so that all our lives can start to return to some level of normality again. This is fantastic news for everyone! In the meantime, continue to stay safe and keep healthy.
- Another reason to be optimistic about 2021 is that the rental market proved itself to be very resilient during the pandemic, with a continued cultural shift towards renting as a lifestyle choice. Government ministers have made it clear that regardless of what tier system is in place, they are keen for the housing market to remain open for business. This means that all move-ins and move-outs will continue throughout 2021 and people will still be able to sell, view, and buy properties. In addition, Belvoir will continue lobbying the Government on your behalf for the implementation of a tenant loan scheme to help reduce the risk of tenants going into arrears.
- Our research shows that tenant demand remains very high, voids and evictions are extremely low, and tenants are staying in properties longer. A total of 41% of Belvoir’s tenants are likely to remain in their rental property around 19-24 months, and almost a quarter are renting for over two years. A survey of Belvoir offices predicts that these factors are likely to continue in 2021.
- In a recent survey of Belvoir offices, 90% of respondents predicted that house rents will increase or remain static in 2021. In addition, 82% predicted that rents on flats will increase or remain static, although as a result of lockdown houses (particularly those with outdoor space) are proving to be more popular than flats. Predictions regarding the likelihood of rising or decreasing rents vary from region to region, and even for offices within a specific region, so it is highly recommended that landlords contact a reputable professional agent in their area to discuss how the market is likely to perform before making any decisions about opportunities to expand their portfolios or to sell any of their properties.
- If you are already an existing landlord, it is likely that the value of your properties may have already risen in 2020. Property expert Kate Faulkner, who prepares the Belvoir rental index each quarter, says: “A rise in the value of a landlord’s rental property could lower its LTV, which may enable them to get access to lower mortgage rates and lower costs. If you are thinking of expanding your portfolio in 2021 you may find that after the stamp duty holiday ends in March there could well be some bargains to be had in the property market. For further information check with your local property agent.”
- Whatever happens to the rental and sales market in 2021, you can be assured that Belvoir will always be here for you. Whether you are a landlord who is buying or selling a property, or you simply need advice on any aspect of property management, you can always contact your local Belvoir office and have a chat with one of the team. In addition, have a look at the Belvoir website (www.belvoir.co.uk) and check out the Belvoir rental index, which is published each quarter. This is a fantastic free resource that has been in existence for over ten years and analyses advertised rents for all Belvoir offices. The rental index is there to help landlords identify exactly what is going on in their particular area, as well as providing a summary of the wider UK rental market.