Early market signs are suggesting that the best time to sign a new tenancy agreement is right now.
During the pandemic, rent values in London fell at a faster rate than anywhere else in the country. With lots of people looking to escape the city for the greener, more spacious plains of the countryside, there was suddenly a surplus of supply over demand in London’s rental market. As the rules of economics demand, this led to rent values dropping.
Today, however, this surplus of supply seems to be coming to an end as people are once again being attracted back to London’s rented homes. And those people who are signing new contracts today are going to be getting a great deal, signing while prices are the lowest they’ve been in quite some time.
By signing tenancy agreements today, savvy renters are ensuring they’re locked into cheap rates for the duration of their tenancy. To this end, two-year agreements are very popular, meaning that as the value of everything around them rises up and up, these clever few will keep paying very reasonable rent.
Richard Davies, Head of Lettings at Chestertons, said:
“Our offices are now agreeing lets with tenants who are keen to move fast with some committing to two-year fixed contracts. With businesses and the public wanting to return to some form of normality sooner rather than later, we predict a continuous recovery of London’s lettings market, inevitably leading to rents reaching pre-pandemic levels.”
Grab a bargain today
While this piece of advice to sign a new tenancy agreement is most important for people in London due to that being where rent values dropped most significantly last year, the same rule does apply across the UK.
Tenants looking for a fresh start in a new rented home should act now rather than wait any longer. Doing the latter is sure to mean missing the opportunity to pay below market value rent. Landlords are currently desperate to keep their properties profitable and so have been forced to drop their prices. But this won’t last much longer.
London is often a forerunner for market trends which then spread across the country. So, if you’re living in Manchester, you should be seeing this sudden rush to secure cheap rent in the capital and feeling secure in the knowledge that the same thing will soon happen in your city. Act now and set yourself up for a couple of years of very affordable rent.
It’s not often tenants are given the upper hand over landlords.
