The pandemic has had a huge effect on the property market. 18 months on, we take a look at how this is playing out in Leeds and the wider market.
Thanks to the Stamp Duty holiday, house prices rocketed to a record high and the appetite for sales has been strong. Not only were homeowners looking to move on or get on the ladder, but Landlords recognised an opportunity to save on buy-to-let properties too.
According to the Property Industry Eye, prices of buy-to-let property has risen in the UK by 5.6% since December 2020. In Leeds, we’re seeing price increases in some of our client’s portfolios of up by 12% in the last 12 months.
This increase, however, has not had a negative impact on potential ROI for Landlords. The impact of the pandemic on the Private Rental Sector has been similar to the sales market and it has seen a steady increase in demand for rental homes, resulting in Landlords being able to achieve higher rents.
‘The highest rental yields can be found in the North West (5.5%), Yorkshire and the Humber (5.4%) and Scotland (5.8%)’. – Property Industry Eye
At HOP, we manage over 2,000 tenants across our Leeds, Pudsey and Horsforth branches and have witness the drastic increase in rental demand first-hand. The lack of supply, alongside HOP’s No.1 ranked marketing, has meant properties listed with us are now letting, on average, within 2- 5 days.
According to the Property Industry Eye’s latest article: ‘…demand from tenants has been growing. In total, 42% of landlords report that they have seen demand increase for their properties in the past 12 months’.
Our Managing Director here at HOP, Luke Gidney, had this to say:
“Demand currently outstrips supply! We see that a large number of tenants are staying in their properties rather than moving due to the rise in house prices, meaning there isn’t as much churn in the rental market as in previous years.”
Luke’s comments are supported by renters today according to latest Property Industry Eye article, which states ‘half (49%) of renters expect to be renting for the rest of their life’.
On the one hand, the factors of the pandemic have created a very buoyant market but on the other, it looks to have made things harder for First Time Buyers. The current rise in house prices has made it even more difficult to get onto the property ladder, and subsequently many potential First Time Buyers are finding they will need to rent for longer than planned, fuelling the competition for quality rental homes.
“Current demand for good quality rental stock is unprecedented. We are currently letting properties within days of the home going on the market. We saw one property come to the market earlier this week and within a few hours the property had already reached 30 viewings.”
“We have also noticed that those who are looking to move are choosing the suburbs of Leeds, where they benefit from more outside space and can often have a bigger property with room to work from home. Right now, stock is urgently needed across Leeds. We have lots of tenants waiting!”
If you are a homeowner considering renting out your property, or are currently a Landlord who wants a Letting Agent with a fresh approach, get in touch with our team today.
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