Now that we’ve put 2020 behind us… an unpredictable year in property due to the pandemic and the uncertainty of Brexit’s impact… we can look forward to seeing what this year holds.
To find out if there will be growth in the rental market in 2021, we’ve researched the property predictions.
Here is our summary.
1. Renting will remain a popular choice
The rental market performed quite strong in the last half of 2020. Interestingly, in some locations, demand in the rental market was nearly 20% higher than in 2019.
Our research shows that renting will continue to increase in 2021. This is due to ongoing job uncertainty pushing people to rent instead of buy.
Once COVID restrictions ease, international students will likely return, and workers will be able to return to their offices, in some capacity. This is expected to see an increase in demand for rental accommodation.
2. Tenant Expectations Changing
Due to lockdown and the work from home orders, we have seen a shift in tenant expectations.
Tenants are now wanting to work from home in comfort and are looking for the following:
- to live in larger properties
- to have a balcony, garden, or courtyard
- to have a better internet connection
3. Increase in First-Time Buy-to-Let Landlords
Although 2020 was an unpredictable year, the number of buy-to-let landlords significantly increased.
Perhaps, not unsurprisingly due to the low-interest rates and stable house prices, there was a rise in demand from first-time buy-to-let landlords.
4. Potential Foreign Investors
With the special visa for British National Overseas passport holders in Hong Kong being granted this year, it is predicted that this will increase the number of new foreign investors buying property.
The result is a potential increase in housing prices, limiting first-time British home buyers from getting into the market and pushing them to continue renting.
5. A Surge in Virtual Viewing
Due to COVID restrictions, we saw an increase in virtual viewings of properties in 2020. The video tours are convenient and save time for both parties.
Although this looks to continue into 2021, it won’t replace the viewing process completely.
6. Ongoing Global Pandemic Impact
Landlords will need to continue to manage issues related to COVID; whether that is the tenant’s losing their job, reduced incomes, or government measures to prevent evictions.
The global pandemic will continue to lead us into some challenging times, and agents and landlords need to be flexible to put new measures in place.
Summary of the Predictions for the 2021 Rental Market
In 2021, rental properties overall demand is expected to be strong, which is good news for landlords.
Investing in the Right Property for Your Goals
We recommend that if you are thinking about investing in a property, you start by getting professional advice to make a considered decision.
At REKA Property Management, we give our clients the facts about the property industry.
If you want to know how to achieve solid rental returns and have peace of mind with your property, then call us on +44 (0) 203 286 6468 or email us at Admin@RekaProperty.co.uk