valuation

Upsurge in tenant demand

Posted on Friday, August 23, 2019

Since the introduction of the Tenant Fees Act in June this year, tenant demand has increased to some seven times higher than at the same point last year. Perhaps somewhat unsurprisingly, many prospective tenants seem to have waited until the new legislation came into place on 1st June before committing to a property, leading to a huge upsurge in demand.

Between May and June, tenant demand is usually fairly static at around 1% over the past few years; however, this year’s increase stands at 7%. With such a rise in the number of potential renters in the marketplace, the number of property viewings also increased in July, as did the number of property transactions in turn.

Rightmove’s commercial director and housing market analyst Miles Shipside has said: “A spike in tenants looking for a new place to live indicates some unsurprisingly held out until fees to start a new tenancy were removed by the government at the start of June. The ongoing shortage of quality stock could end up being exacerbated further by landlords whose tenants are now giving their notice so they can move on without paying fees, and some of those landlords then choosing to sell up rather than let it out again.”

It would appear that the introduction of the Tenant Fees Act has led to a summer peak for the lettings market, with landlords benefitting from a saturated marketplace and rental properties being let more quickly. In the short-term, this is of course excellent for landlords looking to let their properties currently, and in the long term this may suggest that the introduction of the Tenant Fee Ban will lead to more tenants in the marketplace due to it being much cheaper to move into a rental property than previously.

To discuss our Lettings services please contact our Lettings team on: 01256 807 111



Basingstoke Office

01256 807 111

EMAIL US

Bramley Office

01256 882 979

EMAIL US

Tadley Office

0118 981 0022

EMAIL US

Kingsclere Office

01635 297 111

EMAIL US

Theale Office

0118 9078 111

EMAIL US

Newbury Office

01635 881 090

EMAIL US

Mortimer Office

0118 933 1773

EMAIL US

Head Office

01256 636 960

EMAIL US
Quotation mark

I was pleasantly surprised by the courtesy, responsiveness, attention to detail and willingness to help on the part of the sales staff (in particular Nick and Brendan) from the outset. They understand what "going the extra mile" actually means, and this made the transaction so much easier than I had anticipated, as I was necessarily dealing...

View Testimonials
-->