Social distancing sparks surge for rental properties, data shows

Social distancing measures put in place in response to the COVID-19 outbreak resulted in a surge in demand for rental properties in early March, according to data.

The research property company, Goodlord, has revealed there was a significant rise in new tenancies in early March in the UK as a result of the outbreak of the coronavirus pandemic, as tenants rushed to secure new tenancies before the lockdown.

Goodlord’s Tenancy Volume Index shows that during the first week of March, there was a steep rise in the number of new letting applications. With tenants pushing to finalise letting contracts and get the keys for rental homes, the completed number of letting agreements secure during early March was significantly higher than averages in 2019, the research showed.

Whilst lettings have dropped in Britain since stricter lockdown measures were introduced on March 20, contrary to many reports, the industry hasn’t ground to a halt.

As the Property Reporter notes, the number of tenancies continue to stand at around 60% compared to at the same time last year, highlighting the new tenancies continue to be in demand.

Due to the steep increase in letting contract completions at the beginning of March ahead of lockdown, the number of empty rental properties and void periods has also dropped during March. Data shows that in March 2020 when the chaos of the COVID-19 crisis really began take its toll in the UK, the average void period fell from 19 days to 17 days.

The average price for the cost of rent also increased in March, corresponding with the rise in demand for tenancies. All regions of England and Wales witnessed increases in the cost of rent during early March, expect the South West. The biggest rises were found in Wales at 5%, followed by the West Midlands, which witnessed a 4% increase in the price of rent.

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