The Lonres report for June 2021 was pretty positive for both sales and lettings. For lettings, the extension of current restrictions to late July could mean next month is quieter than some would have hoped. Yet stock levels are falling. New lets are up and rents appear to be recovering from their lows of early 2021.
- The extension of current restrictions to late July could mean next month is quieter.
- Stock levels are falling as people start moving back into the city for work
- The number of properties let in the three months to May are up 9% on 2019 and rents appear to be recovering from their lows of early 2021.
- Smaller properties continue to dominate with properties let with three or more bedrooms falling 7% on 2019 levels, compared with a 10% rise in lets of properties with fewer than three bedrooms.
Lettings Highlights from the Report
Activity remains buoyant at the lower end of the market with the number of properties let at up to £500 per week rising 50% on 2019 levels, against falls in all other price brackets.
Of course, lower average rents will have an impact here, as more properties now fall within the lower bracket. Yet an increase in demand for smaller homes will also be a contributing factor.
So far this year the number of properties let with three or more bedrooms has fallen 7% on 2019 levels, compared with a 10% rise in lets of properties with fewer than three bedrooms.
Despite fewer large properties let, agents are still reporting a lack of houses reaching the market. 70% of agents in the recent LonRes Survey citing a scarcity of stock for houses.
This compares with just 35% of agents reporting a lack studio and one-bed flats.
Rents are now just over 2% lower than in May 2020 and 14% below the peak in early 2020. This is down from a low of 17% in February 2021.
Looking ahead, agents remain optimistic about both new lets and achieved rents over the next 12 months. Just 16% of agents expected fewer new lets in the coming 12 months, with 44% of agents expecting rents to increase by between 1% and 5% and a further 24% expecting a rise of 5% or more.
Download the latest report below – including in depth analysis of the recent agents survey.