Street estate agent says rental market in the village has settled down after lockdown uncertainty

A Street estate agent has said the rental market in the village has quickly settled down, following the uncertainty of the coronavirus lockdown.

David Andrews, of Busybee Lettings and Sales, was commenting after property giant Rightmove released figures saying that demand for lettings across the country is up 22 per cent compared to last year, with the South West topping the table at 34 per cent.

Experts say the lifting of lockdown restrictions has released "two months of pent-up tension" in the market.

They say the supply of new rents is not keeping up with demand, however, prompting fears the surge will push up costs and leave some struggling to find homes.

David said that, with the country facing a possible recession, it is too soon to predict rent levels for Street, but if there is a downward pressure on house prices, it will benefit the rental market.

He said: "Following our return to work we have been busy arranging viewings and agreeing both lettings and sales.

"I wouldn't say in Street that there was a pent up demand, in the way that Rightmove was portraying, but we did collect a steady stream of interest on those properties that we were advertising during the lockdown but the Street market has quickly settled back down.

"In respect of the upward pressure on rents I think that at the moment with many businesses still closed and employees still furloughed, the economy is still yet to return to some normality.

"As a country we are now facing a recession, so it is too soon to predict what this will mean in respect of future rent levels for Street.

"How the predicted recession will impact on the housing market, within Street, has yet to be seen but if it does lead to job losses, increasing pressure on individuals to sell and a resulting downward pressure on house prices, this will benefit the rental market and may have an upward pressure on rents but it will also be an opportunity for the buy to let investor to invest in the rental market so this upward pressure could be short-lived."

According to the data provided by Rightmove, demand for all kinds of property plunged during the height of the lockdown.

The restrictions prevented house viewings, surveys and searches from taking place, while removal companies were also temporarily closed.

People were urged to stay in their current homes during lockdown unless absolutely necessary. Evictions were put on hold until June 25.

Since estate agents were allowed to reopen on May 13, though, demand for rental homes has increased at a quicker rate than the sales market, Rightmove said.

Rightmove housing expert Miles Shipside said the pandemic had left many people with an "immediate housing need".

Wednesday May 27 saw more than six million people visit the Rightmove website, its busiest day ever.

"They may need to move for a job," said Mr Shipside.

"In this environment we are in now, there is a need for people with specialist jobs to be in a certain place - just think about the Nightingale hospitals that have sprung up.

"Where some people have enjoyed lockdown, others' relationships haven't survived it and this has had knock-on consequences.

"There could be people who need to move because of job losses too.

"Effectively we have two months of pent-up demand that needs to be satisfied."

Rightmove classes demand as the number of times website visitors clicked through to the details of a property listed online.

However, supply is struggling to match demand.

The number of new rental listings on Rightmove is four per cent below 2019 levels. It dropped to a level of 64 per cent below during the week of April 6.

Landlords are "exiting the market" Mr Shipside says, due to Covid-19 and the uncertainty over tenants being able to afford rent.

Thinktank the Resolution Foundation found one in eight renters were struggling with housing costs as a result of coronavirus.

"It means that landlords have sort of got a choice now," said Mr Shipside.

"They are going to pick those with the best references and who can move in immediately. Those whose credit record is not the best tend to lose out."

More people bidding for fewer properties was almost certain to push up the prices of rented accommodation, he said.