RENEWALS LATEST: Tenants negotiating lower rents with landlords as they stay put

Latest research from leading lettings agency reveals record number of renters staying put and renegotiating lower rents during March, a trend that is likely to accelerating this month. Over two thirds of tenants renewed their rental agreements during March and many negotiated lower rents as they stayed put to weather the Coronavirus crisis, a leading […] ©1999 - Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® - RENEWALS LATEST: Tenants negotiating lower rents with landlords as they stay put | LandlordZONE.

RENEWALS LATEST: Tenants negotiating lower rents with landlords as they stay put

Latest research from leading lettings agency reveals record number of renters staying put and renegotiating lower rents during March, a trend that is likely to accelerating this month.

Over two thirds of tenants renewed their rental agreements during March and many negotiated lower rents as they stayed put to weather the Coronavirus crisis, a leading lettings index has revealed.

Estate agency Hamptons International says 70% of tenancies that were due to renew last month re-signed their contracts, the second highest proportion to do so since the company’s index began six years ago.

Tenants, aware of the economic problems the Coronavirus crisis was likely to create, have clearly been negotiating with existing and prospective landlords to reduce their outgoings during the year ahead.

Rent renewals

Renewed rents fell across three regions – the South East (-1.4%), the East (-0.4%) and Greater London which recorded the biggest year-on-year fall (-2.2%).

Also, although the average rent of a newly let property increased to £980 pcm in March, up 1.2% year-on-year, the rate of rental growth more than halved since February, when rents rose 3.3% year-on-year.

And as lockdown measures were enforced during March the number of new applicants registering to rent a home fell by a third compared with the same period in 2019.

“Once lockdown restrictions ease, we expect activity levels to rise. Renting offers more flexibility than buying a home, so as uncertainty rises, so too does the demand for rental homes,” says Aneisha Beveridge, Head of Research at Hamptons International.

“But although demand for rental accommodation is set to increase, and there are already signs of it picking back up again, the longer-term economic damage to people’s jobs and incomes means that rents on newly let properties are likely to fall between 2% and 5% this year.”

Read advice about tenancy agreements.

©1999 - Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® - RENEWALS LATEST: Tenants negotiating lower rents with landlords as they stay put | LandlordZONE.

Source : Landlord Zone More   

What's Your Reaction?

like
0
dislike
0
love
0
funny
0
angry
0
sad
0
wow
0

Next Article

Housing minister bats off calls for rent increase ban in England

Christopher Pincher has comprehensively dismissed calls from activists, the Mayor of London, lobbyists and fellow MPs to consider a rent increase ban or cap. Housing minister Christopher Pincher has confirmed that the government will not be introducing legislation to ban or cap rent increases during the Coronavirus crisis. The comments were made within a written […] ©1999 - Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® - Housing minister bats off calls for rent increase ban in England | LandlordZONE.

Housing minister bats off calls for rent increase ban in England

Christopher Pincher has comprehensively dismissed calls from activists, the Mayor of London, lobbyists and fellow MPs to consider a rent increase ban or cap.

Housing minister Christopher Pincher has confirmed that the government will not be introducing legislation to ban or cap rent increases during the Coronavirus crisis.

The comments were made within a written parliamentary statement from Labour MP Barry Sheerman, who asked if the Ministry of Housing was assessing whether a rent cap was necessary during the pandemic.

Sheerman’s question is believed to have been prompted both by , and the looming introduction of rent caps in Scotland.

Pincher also said that the government believes its measures to protect tenants within the private rented sector are adequate including its move last month to delay all new eviction proceedings until June.

He also said the decision by the Master of the Rolls to suspend all ongoing housing possession cases for 90 days from 27 March also offered tenants additional protection.

“All tenants remain liable for their rent and those who can afford to should continue to pay it,” he said. “At the end of this period, if arrears have built up, landlords and tenants will be expected to work together to establish an affordable repayment plan, taking into account the tenants’ individual circumstances.”

Pincher also claimed that the government’s measures to boost the welfare safety-net with a £7 billion funding increase to Universal Credit, income tax and VAT deferrals would help tenants pay their rent.

“And we’ve increased Local Housing Allowance (LHA) rates so that they are set at the 30th percentile of market rents in each area,” he said.

“These significant financial measures will help to support tenants to continue to pay their living costs, including rental payments.”

©1999 - Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® - Housing minister bats off calls for rent increase ban in England | LandlordZONE.

Source : Landlord Zone More   

This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies.