Renters Delay Moving Due to Pandemic

53% of renters have delayed moving according to a recent survey of over 1,000 tenants by SpareRoom.

The most common reason for putting off moving home was due to safety concerns.

• Safety of Moving = 40%
• Uncertainty = 31%
• Job Loss or Furlough = 18%
• Viewings = 5%
• Other = 4%
• Rental Reduction on Current Home = 2%

The demand from both renters and home buyers for larger properties and access to green space means that despite 53% of renters delaying moving, 54% plan to move within the next 6-months and 24% within the next year as restrictions ease.

Director of SpareRoom, Matt Hutchinson, commented,

“The pandemic has definitely put a lot of people’s moving plans on hold. For some, this is due to health concerns and for others down to the financial implications the pandemic had on their lives. However, as the UK restrictions continue to ease, and we can finally see light at the end of the tunnel, people are planning ahead again.”

‍

Renting is Cheaper Than Buying

‍

For the first time in five years, renting a property has become cheaper than buying. Home buyers would have saved £102 per month in March 2020 by owning as opposed to renting, but now the average monthly mortgage repayment would be £1,125 compared to £1,054 in rent.

Supply of property for sale isn’t meeting the current levels of demand and prices are at a record high; therefore, some renters will be priced out of the property market due to affordability, despite 95% loan-to-value mortgages.

‍

Impact on the Rental Market

‍

This is putting upward pressure on rent, which has increased by 7.1% over the past 12-months according to research by Hamptons.

Popular cities in the north of England, such as Manchester are forecast to see rents increase by 16.5% according to industry experts JLL.

Savvy buy-to-let property investors are turning to off-plan property to secure below market value property with a range of incentives, that is being designed to meet the demands from the “new normal” of working from home, access to green space and amenities, all on the doorstep of the office.

‍

Click here to explore our market leading buy-to-let property investment opportunities in Manchester.

‍