Rental Trends for 2022 - What Could We See?

As landlords review the successes and downfalls of the rental sector throughout 2021, they will also be preparing for what 2022 will have in store.

Planning accordingly will ensure that changes to the market will not come as a surprise and business will remain buoyant.

In the rental market, different factors and trends continue to influence tenant decisions, which is why it is vital that landlords are aware of these and adapt accordingly.

PropTech to make the process easier

Since the Covid-19 pandemic started in March 2020, there has been a need to limit the amount of contact during the pre-tenancy process. Recent talks about the Omicron variant indicate that further restrictions in the UK could come into action in 2022. This also means that a contactless process will remain a priority.

Although this is in line with Covid restrictions, it also makes the process more efficient and convenient. For example, signing a tenancy agreement document online is far less time-consuming than commuting and doing this in person.

Overall, PropTech makes online communication the focus. Relationships with tenants and landlords can be built online and landlords can share information and run business operations from any location.

Green homes will continue to generate appeal

Tenants are increasingly aware of the impact their carbon footprint has on the environment. As knowledge about this issue expands, we can expect to see green homes becoming highly sought-after.

In a survey recently conducted by Halifax, two-thirds of the participants stated that they would feel proud of their home if it was environmentally-friendly.

In addition to this, much attention has been placed on the removal of gas boilers by 2035 because they emit carbon emissions which lead to global warming. In an attempt to tackle this, the government aims to launch a scheme where landlords and homeowners receive grants to replace their gas boilers with energy-efficient heat pumps.

With increasing awareness of how daily routines can have a detrimental impact on the environment, landlords are being urged to make changes to their homes to ensure they do not miss out on this trend.

Green homes are likely to become increasingly in-demand as climate issues continue to dominate the news agenda, and this could lead to tenants placing more emphasis on the EPC rating of a home and its energy efficiency.

Demand will continue to outstrip supply

In an attempt to overcome the supply and demand problem, the government has put forward plans to contribute £11.5 billion towards new homes.

During the Autumn Budget, the chancellor revealed that up to 180,000 new homes, including 160,000 on brownfield land, will be built. Although this is a large number, it is not enough to tackle the current supply and demand imbalance.

Recent figures from the local government association reveal that during the last decade England has only built around 130,500 properties each year, yet the country needs 250,000 new homes per year.

As a result, demand can be expected to continue to outstrip supply and impact rental trends in 2022. Landlords can expect the market to be a competitive one and this could also result in a further price hike of rents.

Between June and September this year, offices reopened and workers returned to the city. According to Zoopla, during this period alone, renting in the capital rose by 4.7%, proving how much of an impact Covid restrictions have on the rental market.

Furthermore, the Omicron variant could cause changes in tenant values and trends when renting a property, so it’s a good idea for landlords to keep their finger on the pulse when it comes to updates regarding Covid-19.

By using our tools including chat threads and rental agreements, landlords can improve their renting experience and relationship with tenants. Find out more about our service here.