Estate Agency Chain Tells Landlords To Cut Rents By 50% For New Tenants
A chairman of an agency chain believes that landlords should be aware there could be a glut of empty private rented housing stock in various areas throughout the UK, and says that to entice new tenants in they should seriously consider offering a 50% reduction in rent for the first three months.
Simon Shinerock – chairman of the estate agency chain has told a PRS website that it’s “an enormous mistake” if landlords insist on sticking to market rents, if there is a surplus of empty rental homes in their area.
He said: “Going from £1,000 rent to £500 for three months might sound crazy but if that gets you a great tenant who might be there for four years or five years, it makes sense in the long run”.
Shinerock warns that the Coronavirus may cause major changes in the rental market, Airbnb lets’ properties will go back to longer term tenancy agreements especially around Gatwick, Heathrow and other airports’ surrounding areas as demand will undoubtedly fall.
Shinerock says the full consequences of the Covid – 19 pandemic on the rental market will not be fully felt until 2021. The damage will be very much of a ‘slow-burn’ until the full impact occurs when furloughing is withdrawn and the effect it will have on the ever changing wider economy.
He says landlords must make themselves become fully aware of the change in circumstances in their local area, where there is a strong likelihood some will have an oversupply and others having housing stock shortages.
Richard Merrick of PIMS, said:”I may be wrong but I cannot think of anyone being able to single out an area in the UK, where there will be the number of unoccupied rental homes that would warrant a 50% cut in rent for new tenants.
“Many of our agency members have told us that there is a ‘gold rush’ of applicants for new tenancies following the lockdown restrictions being removed.”