The May 2021 Lonres report is just out and in order to properly compare figures for this pivotal month in the property market, this report compares April 2021 with April 2019, recognising that April 2020 was too unusual to give a true indication of the current health of the prime market.
The report, which also takes into account the five-year average (2015-2019) for April, has the following highlights for the prime LETTINGS market.
- Rents look to have bottomed out and demand, particularly for smaller properties, is rising.
- 2% increase in new lets across prime London between January and April this year compared with 2019 levels.
- People are looking for more cost effective city rentals with new lets agreed for studio flats up 15%, and one bedroom properties up 9% over 2019; in comparison to 23%
- FEWER lets of properties with 4+ bedrooms during the first four months of 2021 compared with 2019.
- New instructions for lets in April down 17% on 2019 levels.
- Window of opportunity for tenants is coming to an end with a levelling off in rents and the prospect of more tenants coming forward over the next few months.
Thankfully it appears the worst is over for the rentals market as we see new tenancy numbers increase as people return to the office and life returns to a degree of normality.
However, it’s important to remain focused and constantly attuned to market conditions to ensure voids are minimised.
Lettings Agents need to keep nimble and make constant adjustments to their marketing strategies as the market evolves.