The coronavirus global pandemic has undoubtedly brought obvious and less obvious changes globally. In fact, people will forever recall 2020 as the year of social distancing, lockdowns, wearing of masks, and much more. Across the world, markets are experiencing a drastic shift to online education and online shopping. What’s more, virtual reality technology is turning out to be more and more gorgeous.
Due to this, London rentals, like other industries, have been adversely affected. As the impacts of this virus continue to increase, we must assess the life after the end of the pandemic. If you are anxious about London property rentals’ future, read on to learn how it will cope after the virus containment.
What is the Expected State of Affairs?
Well, you should not be worried to realise that London property rentals have undergone a turmoil period due to the coronavirus pandemic. According to the BBC, rental prices will decline by 20%-30% before they ultimately return to their ideal prices. While most of you anticipate price stabilisation, you need to assess the bigger picture regarding how this virus is starting to adjust the property renters’ attitudes.
Renters Will Re-evaluate their Needs
Most of you know that the simple and good relationship between demand and supply is the driving force behind London property rentals. Merely put, high demand and low supply will make the prices rise, and vice versa.
The huge problem potential tenants face is that business is not happening as usual. Most people have been working from home for the longest time possible due to governments’ movement restrictions and social distancing measures.
So, it will not be a wonder to find employees working from home even after the culmination of Covid-19. Therefore, some individuals who might have rented houses in London due to their workplace closeness may re-evaluate this move.
What’s more, those who were on the verge of relocating to London may not do so. If we decide to follow this analogy, the demand for London properties may continue to decline.
An Increase in the Tendency of Trying Before Buying or Renting
Generally, renters seem to have been affected by coronavirus impacts to a great extent. Perhaps this is the reason why most people have re-assessed their lifestyles. As a result, they have adjusted to a more realistic tactic due to the uncertain future. Property experts believe that London property renters will increase in the coming years.
Landlords Must meet tenants Requirements
In recent times, the United Kingdom economy, in general, has declined. Although the decline is not as extreme as the economists had projected, the truth of the matter is that most people are still struggling.
Due to this, it is only wise for property owners to accommodate renters’ requirements who might find it challenging to meet the deadlines. So, you should not expect the rental prices to increase significantly not unless the economy stabilizes.
How is Corporate Demand?
It is essential to evaluate how corporate rental needs are changing in London. Since the start of the pandemic, most organizations are searching for huge London properties. Here are some of the reasons why this trend is happening:
- Companies plan to accommodate senior employees in these properties.
- Some of the businesses hope to adhere to traditional in-house operations.
- On the other hand, some small businesses that have had a rough time due to insufficient funds and pandemic have opted to limit their operations. In so doing, they are encouraging telecommuting to lower in-house expenses.
The Final Words
While the Covid-19 have adversely affected the London property rentals, most specialists believe that this is a mere short-term situation. In fact, rental growth around greater London is projected to be roughly 1%. Since the pandemic will end soon, thanks to the vaccine invention, the time to assess London property rentals’ future is now!