Photo by The UK’s rental market is experiencing a significant shift, with some postcodes seeing a turnover rate as low as 10%. According to Zero Deposit’s latest market insight, this is due to low tenant demand, which is affecting the margins of both letting agents and landlords alike.
Rental market turnover rates vary across the UK
Analysis of rental market turnover by postcode reveals that on average, 78% of all UK rental market stock is currently let to the nation’s tenants. However, this isn’t the case in every postcode. Three of the postcodes with the lowest rental market turnover are all found within Leeds, with the LS3 postcode seeing a mere 10% of rental stock currently let.
“For the large part, rental properties are in high demand, but as with all aspects of the property market, this metric can differ drastically from one postcode to the next.” - Sam Reynolds, CEO of Zero Deposit
The ability to offer a Zero Deposit option can be a game-changer for letting agents, allowing them to provide access to the whole market for their landlords. With the upfront cost to tenants starting at just £7.50 plus setup fee, it’s significantly more attractive than other options.
Santander slashes interest rates, sparking mortgage price war hopes
In other news, Santander has joined the ranks of lenders cutting interest rates, sparking hopes of a mortgage price war. Industry experts say this latest move has the potential to ramp up a rates battle between Britain’s biggest lenders.
“This is Santander reacting to its competitors and joining the rate reduction party.” - Stephen Perkins, Managing Director at Yellow Brick Mortgages
The reductions will offer some hope to the hundreds of thousands of people coming off cheap fixed-rate deals over the next 12 months. However, they still face paying substantially more - hundreds of pounds more each month - given that industry experts say there is no chance of a return to the ultra-low home loan rates of 2%.
Mortgage rates continue to fall, but borrowers still face uncertainty
As the mortgage market continues to evolve, borrowers are advised to stay vigilant and shop around for the best deals. With the General Election looming, the future of the mortgage market remains uncertain, but one thing is clear: borrowers will have more power in the months ahead.
“Whatever happens in the General Election this week, borrowers look set to have more power in the months ahead.” - Andrew Montlake, Managing Director at Coreco
