Tuesday, 02 March 2021

‘Try before you buy’ generates rent spike

THE rental market in Henley is seeing a spike.

Estate agent Savills says this has been fuelled by people seeking more living and leisure space in the wake of the coronavirus pandemic.

It has also found that a quarter of higher-end homes have been letting above the asking price in the last month.

Alex Lee, who leads the lettings team at Savills Henley, said there is strong demand for larger properties, although these are in limited supply.

She said: “Large parts of the market continue to be driven by people looking to make real lifestyle changes as a result of covid-19 and the experience of lockdown.

“It’s too early to know if this shift in mind-set and behaviour is permanent, but we expect to see it carry over into early 2021 at least.

“Competition for the best properties, particularly family homes in Henley has fuelled price rises.

“People now anticipating a mix of home and office working are looking further afield, while some are adopting a ‘try before you buy’ approach before a permanent move.

“However, tenant demand is only part of the story. The strong appetite for properties means that stock levels have fallen.

“The lack of available homes has resulted in multiple bids for some properties. This in part has contributed to rent increases, with 25 per cent of prime properties letting above the asking price in September.”

Savills says the increase in demand for rental properties has led to annual rental growth of 0.7 per cent in Henley and surrounding areas while most locations across London have seen prices fall.