Despite the current lockdown restrictions, we are all eager to find reasons for optimism in the year ahead. The cloud that engulfed 2020 has certainly not given way, but it has perhaps been lanced by some stray rays of sun thanks to the vaccine rollout.
Given the current need for positivity, what reasons are there to be cheerful about the property rental market over the next 12 months?
1. The Market in 2020
Rather unexpectedly, the rental market in 2020 remained buoyant to the end. The lengthy slump in activity that we all anticipated during the first national lockdown never came about, as agents and tenants adapted, and video tours came to the fore. Between March and September 2020, a staggering 54% of properties let by Reside were achieved without the need for a physical viewing – such was the success of our virtual tours. When the second national lockdown came around in September, the government took the decision to keep the property market open and allow viewings to continue, a policy that they have thus far maintained.
Strong demand from tenants, allied with a healthy supply of properties (partially from landlords exiting the holiday rental market) meant that 2020 was a remarkably busy year. We let more properties during 2020 than in any other year in the Reside’s history – a staggering outcome, all things considered.
There is no reason why this should change in 2021, so we expect it to be another strong year for both supply and demand of rental property.
2. Whatever Happens, We’re Ready
Whilst we hope that there are brighter times ahead, it seems likely that there could be further lockdown restrictions before things start to improve. But whatever 2021 throws at us – we’re ready.
Every aspect of our management service can be carried out from home, if need be. Every member of staff is set up with home access to our phone and computer system; property inspections can now be done remotely; we have a system for contactless check ins and check outs; contracts can be signed remotely; Right to Rent checks are carried out virtually and, as we’ve already established, properties can be marketed very effectively without anyone needing to leave their home.
Regardless of any restrictions that are put in place over the course of this year, we will be able to provide a full and professional service to our tenants and landlords.
3. Destination: Bath
Bath landlords can look forward to increased demand in 2021, as we expect the city to be a popular destination for renters leaving London (no, let’s not call it Lexit). It is widely thought that there may be something of an exodus from the capital post-Covid-19, as new working from home regimes reduce the need to commute so frequently.
4. Return of the Renters’ Reform Bill
The much-discussed Renters’ Reform Bill is slated make a reappearance later in the year. It formed part of the Queen’s Speech in December 2019 and was widely expected to progress through Parliament in 2020, until the government became preoccupied by more important matters. But with the private rental sector being inundated by so much new legislation, why is this a cause for optimism?
The Bill’s two main promises that have been outlined so far are to scrap Section 21 evictions, and to introduce lifetime deposits for tenants. If done correctly, both of these changes could be positive for landlords and tenants, so this key piece of legislation is an opportunity to improve the current system.
Lifetime deposits will travel with tenants from property to property, reducing moving costs for tenants and making the moving process easier and less costly.
Section 21 (or ‘no-fault’) evictions have long been in the crosshairs of the main political parties, and its departure is inevitable. ARLA Propertymark has lobbied the government to replace Section 21 with a more efficient system that would be fair to diligent landlords, and provide tenants with security of tenure. The detail of ARLA’s proposal can be found here, but it is not yet known what the government’s approach will be.
5. A return to normal
We have become so entrenched in our ‘new normal’, that the prospect of a return to the ‘old normal’ seems unfathomable. Nonetheless, if the vaccine rollout is successful, we can dare to dream of a return to some sort of normality later in the year.
Whilst it remains to be seen what a post-Covid world looks like, we will bring many lessons learned from the pandemic forward with us. Over the last year, we have been forced to embrace new technologies, pair back and hone our services, and work more diligently and harder than ever before. Although we wish this had never been necessary, we have discovered ways to be more efficient and innovative than ever before. Whenever we do finally emerge from the pandemic, Reside will be stronger and better for it.
Reside is an award-winning independent letting agent in Bath. Please get in touch if you would like to discuss any aspect of letting or managing your property; we would love to hear from you.
Toby holds a Level 3 ARLA Propertymark qualification and runs the 'engine room' at Reside, making sure that properties are perfectly-presented and that they are let quickly at a good rent. When not working, Toby is happiest when enjoying a day's cricket.
