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New research results from the expert for real estate loans, octane capitalhas shown that stock levels in the rental market have fallen sharply in major UK cities.
To generate these results, the rental stock in 21 major UK cities was analyzed and how rental housing availability has changed during the pandemic.
Rental stock comparison 2019 and 2020
The Covid-19 virus reached the UK towards the end of January 2020, meaning dates before that are considered pre-pandemic.
According to Octane Capital, there were approximately 82,726 rental units available to renters in these 21 cities at the end of 2019.
In January 2020, the start of the pandemic, the number of rental apartments for renters jumped to 96,735. At the end of 2020, this was up 107% compared to the pre-pandemic market.
With rental inventory falling from 171,080 to 145,196, Octane Capital research shows tenant demand was returning around this time last year.
Contemporary rental stock
With all restrictions currently lifted, the rental market appears to be recovering. The latest figures from Octane Capital show a 55% annual decline in rental stock availability and a 62% decline from the pandemic high, with just 64,839 rental properties listed.
Overall, the capital of England is posting the greatest return at the end of 2020 compared to this pandemic peak of available rental properties.
Across London, the level of rental accommodation currently available has fallen by 74%. Edinburgh recorded a drop of 69%, Aberdeen (-64%), Newcastle (-62%) and Cardiff (-59%).
Octane Capital Chief Executive Officer Jonathan Samuels concludes: “The rental market revival is well underway and the recent decision to lift all remaining Covid protocols will only have boosted that confidence further as tenants in droves are returning to our big cities to live and work.”
“This will be extremely welcome reading for the country’s landlords, who have suffered badly from dwindling demand during the pandemic, forcing them to massively scale back their rental income expectations while also suffering from long vacancy periods.”
“It is fair to say that we could not find ourselves anywhere else at this time and, if anything, there is now a shortage of suitable rental equipment to meet this recurring demand. As a result, we are seeing strong rental income growth and while this will not negate the impact of the last two years, it will certainly help keep the ship moving.”
