In a sudden shift from recent developments, there is evidence that landlords are shunning often more profitable short lets, in favour of longer-term tenancies. As the Coronavirus spread gathers pace and the Government announces wide-ranging measures of support across multiple industries, it appears the UK's residential lettings sector is also rallying around those in need, to do their part to ensure there are enough long-term rental homes available for those who need them.
Right now is a tough time for everyone as the pandemic grows. Life during lockdown is also encouraging the use of different methods to ensure tenancy changes proceed safely and with the right tenants.
Short-let churn slows
According to recent data from Spareroom, the number of people searching for a new rental home across the UK has fallen by 20%. This likely reflects a desire among tenants and landlords to keep things as they are to help limit the spread of coronavirus and also how many different people, individuals come into contact with.
But that’s not all, while fewer people are looking for a new rental home, more landlords are advertising their rental properties to long-term, rather than short-term tenants. Of course, one big reason is that tourism is currently non-existent, so the demand from that sector has vanished.
However, another reason is that landlords don’t want to be in contact with lots of different tenants during this period of uncertainty and fear. By agreeing on a long-term contract, 6 months or more, that ensures you only have one tenant, or group of tenants to deal with. It also means less cleaning and maintenance of rental properties in between tenants.
“Although it’s still early days, we’re seeing some interesting shifts in behaviour on both sides. Following widespread cancellations, we’re seeing both landlords and homeowners moving from short term rents to looking for longer term security” says Matt Hutchinson, SpareRoom director.
While that appears to be a broader trend, for one short-term let management firm based in London, they’ve opted to offer their properties which can no longer be let out to tourists for the short, to key workers and NHS staff.
UnderTheDoorMat has around 300 properties in the city that it is making available to Key NHS workers, free of charge. This can help make sure they have somewhere safe and nearby to sleep when they’re working long shifts. Or, where NHS workers are concerned they’re putting their family at risk danger every time they go home, they can choose to stay away for a longer period, again for free.
Landlords offer tenants virtual tours
Where landlords are letting out a property to a new long-term tenant, meeting face-to-face is no longer an option. But, to ensure new tenancy agreements can still go ahead, landlords and potential tenants are conducting their first meetings and property tour online.
This is a safe way to conduct business and also means that where a tenant wants or needs to move home, they can still do so.
Of course, this isn’t something completely new to the lettings world, tenants from overseas or out of the area have likely experienced this in the past. However, the volume of virtual tours and e-meetings is rising as the lettings market seeks a way to continue operating and providing tenants with the homes they need.
How long this will go on for is currently unknown, but for most people, they’re sure to be hoping for things to go back to ’normal’ sooner rather than later.
