What is a Stop Gap Renter?

One in ten properties rented in July were rented to “Stop Gap Renters”.  So, what is a stop gap renter?

A stop gap renter is someone who has sold their property, but cannot find a new one to buy. Stop gap renters are also those who now have the freedom to move further afield from their place of work as of new hybrid working policies adopted by many companies, meaning that they do not need to commute to their office every single day. They may like the idea of moving to a new area, whether it is to a new city, or, to the countryside, but want to try out the lifestyle before they commit to buying a property.

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1 in 10 Homes Let in July were to Stop Gap Renters

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A record 10% of new renters in July were Stop Gap Renters, which is the highest level since 2016.

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Shortall in Supply of Property to Buy

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According to Hometrack, there were 25% fewer properties to buy compared to 2020; therefore, finding another property to buy for home movers has become increasingly difficult.

Property sellers who are moving home are now facing a tough decision, as many have secured the sale of their own property at such a high price, so where they cannot find an onward purchase, many are choosing to rent a property whilst they continue to look as opposed to withdrawing from the sale, which has fuelled the stop gap renter market.

Being chain free can also be appealing when buying a new property, as transactions with a large chain are more susceptible to the transaction falling through if the chain collapses. Click here to read more about the risks of buying property in a chain.

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Shortfall in Properties to Rent

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The rental market is also facing supply problems, with 43% fewer properties available to rent in July compared to the same period in 2020.

Home owners who were selling and stop gap renting were competing with long term renters, with demand outstripping supply, which has inevitably push up the rent being charged.

There was 6.2% increase in rents being charged in July, compared to the same period last year. The North of England saw a massive 10% increase in rents being charged according to Hamptons.

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Manchester’s Thriving Rental Market

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The Manchester rental market is booming, with rents anticipated to increase by 16.5% in the 5-years to 2025.

The rental management company for Ancoats Gardens in Manchester achieved a 99% occupancy in July and received a record number of applications and enquiries last month, a clear sign of the huge demand for good quality and central property that comes with great amenities and access to green space.

Prices start from £249,950 and 7% rental returns forecast, Ancoats Gardens has been hugely popular with buy-to-let property investors.

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‍For further information on Ancoats Gardens Manchester, please click here.

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