Where is the residential market headed come the end of June?
Back in April, I reviewed the lettings market in anticipation of a busy Spring / Summer for the residential lettings sector, especially in and around Bury St Edmunds.
You can read that article if you missed it here – https://www.hazells.co.uk/2021/04/29/residential-lettings-market-in-review/
Since then, we have seen unprecedented demand for the properties we have put onto the market, with the number of enquiries soaring, pointing to a large demand vs supply, which has in turn pushed asking rents higher.
Something which I didn’t touch on, because I didn’t quite realise how much of an effect it would have, was the impact that the stamp duty holiday for property sales would have on the rental market, as we saw increased demand from homeowners looking to rent in order to break their chain to make sure sales completed by the end of the stamp duty holiday going into rental accommodation for six to twelve months, to give themselves breathing room to seek out their next purchase.
With the stamp duty holiday coming to an end, will this then mean that there is a slump in the rental market?
I do not think so, although I do think that there may be a levelling off, as the supply of rental properties becoming available starts to catch up with demand, as people naturally start to move across the summer months, helped by the relaxation of covid rules. I believe that whilst the market will remain buoyant, it will be slightly less frantic and more as we have been used to.
One thing that is for certain, is that now is an excellent time to be thinking of putting a property on the market for rent, and not a bad time to consider investing in buy to let.
As always, if you would like specific advice on any aspect of lettings please do contact either Chris or Andrew on 01284 702 626