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Monthly archive for June 2020

Rental Market Grows By 30% In Wake Of Coronavirus Decline

Rental Market Grows By 30% In Wake Of Coronavirus Decline

In the last 2 weeks of March, as lockdown came into place, the demand for rented properties in Peterborough dropped by 57%. During April this rental market decline rebounded by 30%.

Compared to the house sales market, the impact of coronavirus on the rental property market has been a lot less pronounced. For example, between 7th March and 30th March the demand for rental properties in Peterborough feel by 55%. Meanwhile, the house sales market in Peterborough saw a drop of 70% in buyer demand.

Since the office reopened in late May the increase in uncertainty during coronavirus has left households looking for an immediate housing need, looking at the rented properties in Peterborough. The rental market has always been more flexible than the sales market. Those looking at rented properties will often be able to move within weeks, as opposed to buying a new home which can take months.

We are already experiencing a rise in the wake of the coronavirus decline at Letters Group. This is very simply because the average time to move into a rented house in Peterborough takes around 3 weeks, while a house sale in Peterborough could take around 3 months.

Experts predict that by the end 2020, the total number on moves within the rental sector will be around 25% less than 2019.

The annual UK rental growth and increase in rental markets was at 2.4%. This was up from 1.5% in March 2019. It is expected that rental growth for the remainder of 2020 will remain moderately positive for landlords in Peterborough.

If you are a landlord in Peterborough and would like to talk about the effects of coronavirus on your rented properties, call us. We will happily talk through any concerns you should have and let you know the things you don’t need to worry about.

If you are looking for a rented property to move into, call our team. We have a selection of great rented properties in Peterborough which we can happily show you virtually or through a socially-distanced house viewing.

Will House Prices In Peterborough Fall After Lockdown?

Will House Prices In Peterborough Fall After Lockdown?

It’s been an interesting journey for the housing market during the coronavirus pandemic and lockdown. The ban on house viewings in Peterborough and house moves bought the property market to a near-total standstill. But how are things looking as we begin to come out the other end?

We have been back a few weeks now and we have been dealing with a great demand. There are a lot of serious buyers, as well as a lot of people wanting to sell. It still remains to be seen if this is simply a case of ‘pent up demand’. However, as things stand now – it is very positive. We have seen no evidence of house prices in Peterborough softening.

There is some brilliant data out there that can help you gain a rough idea of what your home may be worth. For example, the Land Registry monthly house price reports or RightMove reports for example. It is important to note that the housing market in Peterborough has been on hold for a while. It will take a few months for good quality data to be created again as signs of normality start to show.

Currently it is very hard to predict whether house prices in Peterborough will fall after lockdown. The nature of the current crisis is larger and completely different to anything we have experienced before. In this situation the crisis has been caused by global health, as opposed to economic circumstances.

The nearest comparison is the house price crash in 2008. However, this was partly bought on by tough restrictions on borrowing. With some mortgage suppliers we have seen similar circumstances to the 2008 credit crunch. At this time homebuyers in Peterborough needed a 40% to 50% deposit to get approved for a mortgage. Things are not quite at this stage now, but those with lower deposits are struggling to get mortgages during these uncertain times.

Some housing market experts believe that house prices have lowered and they will rise again by 2022. Savills have reviewed their five year forecast and predicted that house prices will drop between 5% and 10%, recovering slightly in 2021 and then there will be a real surge in 2022.

If you are considering selling your home or buying a new home, we recommend you give us a call. As you can see in the media, things are changing all the time. We will give you the latest housing market updates for Peterborough and help you make the best decision going forward.