11/06/2020
The London property market – June 2020
The housing market has re-opened and in the first two weeks since restrictions were eased, we have seen growing numbers of enquiries from renters looking to move home.
Of course, the rental market we are seeing now is very different to how it was pre-lockdown. There is a lot of housing stock coming onto the market at the moment. In part this is due to Airbnb owners with empty properties looking to find long-term tenants for their properties, as tourism has ground to a halt. Many students have vacated their properties and returned home, while some professionals have had to leave their rental properties because they have been made redundant or furloughed and are unable to pay the rent. That’s the bad news. But there is a positive side.
We are again starting to find new homes for professionals who are looking to upgrade or move somewhere bigger at the end of their current lease because they are now working from home, perhaps indefinitely. Working from home may be the new normal for many, at least for some of the time, so a dedicated work space or additional bedroom may become a ‘must have’. The Covid-19 lockdown has also seen renters re-assess their priorities and as well as desire more internal space, many are looking for a home with outside space such as a balcony or patio.
So rental demand is steadily returning but of course, this is a very challenging environment for all of us. Our lettings teams, including our directors, remain mainly based at home and are working extremely hard for landlords and tenants at all stages of the letting process, examining each transaction on a case by case basis and liaising between both parties if there is any disagreement to reach a satisfactory outcome. This could be when negotiating a new tenancy agreement, renewing an existing lease, assessing a tenant’s ability to pay their current rent or surrendering a lease.
Virtual viewings now an essential part of our service
Virtual viewings were already increasing in popularity pre-lockdown but now they have come into their own and are an essential part of our service for applicants. Applicants are now viewing properties online initially, before seeing the property first hand, reducing the number of properties they see in person. Some have even signed a new tenancy agreement simply on the basis of a virtual tour. And we expect this trend to continue, even when life returns to ‘normal’.
