Homeowners are turning to renting amid property shortage
Why homeowners are turning to renting:
There is no denying the past year has been a whirlwind already for the housing market. After the Stamp Duty Holiday led to prices rising faster than ever before and houses flying off the shelf, a housing market that was predicted to fall amidst the pandemic, surpassed all expectations.
As the provissions for the housing market end and some level of normality begins to resume, there is a new issue facing sellers in a lack of supply for new homes. This undersupply in the market has led to sellers moving into rental accommodation, to allow their buyers to complete while they await a property becoming available.
New research by Estate Agent Hamptons has shown that 10% of new tenancies taken out this year were done so by homeowners. This figure is the highest rate since 2016 and is equivalent to over 117,000 sellers.
Aside from the short supply of houses, there are other reasons why this may be the case. Long-term moves prompted by a desire for more space or a spot in the country has been on the rise since lockdown and has always been a prominent reason for renting after selling.
Sellers have also tried to beat the stamp duty holiday for their buyers to prevent any withdrawals or price negotiation.
With 1 in 10 new tenancies being previous homeowners, these mostly fall into the category of a short term tenancy. Whilst it may be tempting for landlords to skip steps on a short-term tenancy, it is still vital that agreements and paperwork is completed in the usual way.
Landlords can view our guide to a tenancy by clicking here
And book an inventory by clicking here