With the current market being exceptionally busy, with a change in jobs and priorities, tenants are now flooding the market, meaning that at the moment we are in a Landlords market. Compared to the number of applicants, there is a small number of available rentals on the market for offer, due to this it has also meant that prices have slightly increased as well, however this is reflected in house prices whereby Halifax noted that in the last year there has been an increase of 5.2%. Now as soon as a property comes onto the market, within the first 24 hours, properties at Evolution are seeing on average of 50 plus applicants registering interest. So, if you are an applicant, make sure you are registered to email and text updates from your local agents, in order to register with Evolution, ring us on 01233 501601, so you don't miss out!
Renters are now moving away from bigger cities, as still some companies are working from home, therefore tenants are noticing they can find properties in smaller towns and get more from their money and work from home. Rightmove has noted that in August 2020, rental searches have increased by 34% compared to the same time last year. Rightmove explained the top ten biggest increases in area searches in England, Folkestone came up as number six, with the increase compared to last August being 62%! The town itself, has great connections to London and Dover, while having the beach on your doorstep, making it perfect that would like that seaside town feel but in reach of London by only one hour at great prices. We have seen that all rentals have created high interest, but for the Folkestone area, the interest in rentals there has been even higher.
At the end of August, it was announced that Landlords will now need to give six months' notice to tenants, unless it is due to reasons such as domestic abuse, then it will be only 2-4 weeks' notice (see the Tenant eviction period notice article). Following on from this, when it comes to local lockdowns, the evictions will not be enforced by bailiffs, while the local lockdown is going on. Further from this, it has also been announced that over Christmas bailiffs will be advised not to enforce any possession orders, apart from those in the extreme circumstances. The Government has not yet placed any dates on this “winter truce” for England and Wales. These new measures are to help those vulnerable tenants in a particularly difficult time.
Shelter carried out a survey which expressed that 230,000 tenants in England alone, have fallen into rent arrears from the pandemic. However, it must be recognised that while this is going on, Landlord groups have seen that this has made landlords feel powerless, in dealing with the rent arrears currently. For some landlords, the rent is needed for certain properties such as buy to let mortgages, therefore causing a vicious cycle. Since lockdown it has been seen that while the rental market is rocketing, some landlords because of rent arrears with the recession have sold their rental properties due to low funds.