Newly released data from The Mortgage Lender has revealed that one in five landlords believe demand for more space due to lockdown and working from home will drive tenants from urban areas to the country.
According to research from OnePoll in July this year, 35% of landlords had changed their view on the type of tenants they would find attractive in the future because of the pandemic.
And there is already evidence of this shift according to the latest Rental Market Report from Zoopla, which identified a two-speed rental market emerging between London and the rest of the country with a supply/demand imbalance supporting positive rental growth across all regions and major cities outside London.
It predicts rental inflation outside London will finish the year 1% up on last year while in London rents are expected to fall by 5%.
What a panel of landlords said:
“Multi-generational and rural properties will be in demand. There will be a move out of the cities and big towns.
“Possibly more rural property values will increase or remain stable and city-based values may reduce.”
“I think prices in areas outside cities will increase.”
“Increase on those with gardens in the countryside.”
“People will move from certain parts of London and the rental market will change.”
“Property with outside space will be more popular and rents will increase.”
Steve Griffiths, The Mortgage Lender sales director, had this to say: “No-one really knows what the long-term impact of COVID-19 will be on where people choose to live in the future – but we do know that a lot of larger employers with flagship offices in London have already taken the decision their workforce will remain working from home for the rest of this year.
“Despite the uncertainty, we do know that we’re not building nearly enough new homes in the UK to meet demand and that good quality rental properties will continue to be desirable.”