Rental market cools amid severe cold weather

Posted on Thursday, December 22, 2022

Following freezing temperatures and heavy snowfall this month, the number of tenancy applications being processed by letting agents has unsurprisingly fallen compared to 2021 levels, when the weather was milder (with a low of 2°C), according to fresh figures from Vouch and Goodlord.

Data compiled by Goodlord between 12th December and 19th December, when temperatures plummeted shows that tenancy volumes were running at an average of 94% of their expected levels.

In comparison, the same period in 2021 saw higher-than-average levels of activity – with tenancy volumes running at an average of 103% of expected levels.

This means that, year-on-year, volumes dropped by 6% over the last ten days.

Figures from Vouch confirm the trend. The platform saw tenancy volumes hit a six-month low during the week of 13 December onwards, as prospective tenants stayed home.

The dramatic temperatures may have induced an earlier than average start to the ‘Christmas slowdown’, when agents typically wind down over the holidays, before market activity ramps back up from January onwards.

Tom Mundy at Goodlord commented: “We always expect to see the market slow right down in the festive period, but the snowfall and sub-zero temperatures certainly seem to have accelerated that cooling off. Whilst lots of new tenancies were still getting processed, with demand remaining high, it was definitely a quieter than average week for the market.”

Tom Goodman at Vouch added: “It was certainly a slower week for the new tenancies being confirmed, but agents and landlords were rushed off their feet in other ways. Staff struggled to get to the office and properties were experiencing frozen pipes, so it was definitely all hands to the pump across the market. I’m sure all agents are looking forward to a well-earned break over Christmas.”

Via @PropertyIndustryEye