How is the private rental sector performing? Where are landlords seeing peaks and troughs? What is affecting letting agents in 2021?
Statistics are one of the best ways to get a good snapshot of the current buy-to-let market, so ARPM has brought together the most telling facts and figures from across our industry. Here are 10 figures that are shaping the lettings sector as we approach the halfway point of 2021:
- 3% – this is the average rate at which rents outside of London are rising per year, according to Zoopla. The property portal says the rise is the highest seen since late 2018, with the North East and the South West leading the charge. Both regions posted rent rises in excess of 5%.
- 700,000 – is the number of people the Treasury forecasts will use the Breathing Space legislation in its first year. Many of those will be tenants in rent arrears who can now apply to have all debt recovery action against them suspended for up to 60 days.
- 1st October 2021 – is the date when notice periods will return to pre-pandemic timescales. Until then, the notice period will reduce to four months from 1st June 2021 in all but the most serious of cases (where notice periods range from ‘immediate effect’ to two months).
- £11,500 – was the amount a letting agent was fined for breaking HMO and fire safety rules in a property it managed. The fine was a result of ‘rent to rent’ activity, which is a growing concern in the private rented sector.
- 1.015 million – is the number of search terms relating to ‘letting agents’ that were recorded by Google in April 2021 – 7% higher than the previous record in June 2020. This stat followed news that the phrase ‘first-time landlords’ was the most-searched for term by mortgage brokers in February 2021.
- 59% – is the charted increase in demand for rental properties outside of London, noted by Zoopla in the 28 days to the end of April 2021. Renter demand is also up 7% in inner London, pointing to green shots of recovery.
- 27% – is the percentage of buy-to-let landlords who are currently planning to add to their property investment portfolios in the near term. The survey of 500 UK landlords by Knight Know also found 88% are feeling confident or very confident about the buy-to-let market outlook for the next year.
- £996 – is the new average rent per calendar month across the UK. The latest figures from HomeLet, released in May 2021, show a record high and the fifth month in a row that the average rent has increased. The average rent is up 0.7% when compared to the previous month and 6.2% up on 2020.
- 83% – is the number of tenants who say they’d pay more to rent a property that meets the needs of modern-day life. Those questioned by Ascend Properties cited a lack of the following as to why they felt current rentals weren’t up to scratch: outdoor areas, parking, privacy and internal space.
- 6% – this is now the new average rental yield – the highest recorded for three years – according to data from Paragon Bank gleaned from almost 900 landlords. Buy-to-let yields have climbed 0.7% year-on-year – up from an average yield of 5.3% in Q1 of 2020
ARPM is here to help letting agents take advantage of the current buy-to-let market. Contact us if you want outsourcing advice or simply want to discuss your options.
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