Indicators suggest the UK rental market ‘is set for a swift comeback’
Online visits and engagement by homebuyers and tenants in the UK has dropped 4.1% over the past six months as many people have been unable to follow through with their search due to the property industry lockdown, but there is now room for growth.
The latest research by Spotahome shows that the UK saw the eighth largest decline in online property market activity of 28 European countries based on the leading online portals for each nation, with just Malta, Croatia, Slovenia, Luxembourg, Italy, Belgium and Greece seeing a greater drop.
In contrast, Austria (7.8%), Finland (7.8%) and Sweden (7.4%) saw the highest average monthly increase in online property market activity.
Although many high street agents have tried to pivot with lockdown market restrictions, other fully digital platforms have remained largely unaffected, with Spotahome seeing website traffic increase consistently for seven straight weeks.
But following its reopening last week, the UK property market is widely expected to bounce back, according to Spotahome.
Jack Kuecker, Spotahome’s director for UK and Ireland, said: “It’s interesting to see how the severity of the current pandemic has impacted property market sentiment across Europe. This is, of course, influenced by the varying levels of lockdown restrictions, with some nations maintaining a business as usual stance while others have ceased market activity completely.
“The good news is the most recent market indicators suggest the UK market is set for a swift comeback. We’ve already seen a sustained level of activity across our platform for the duration of the UK lockdown; both domestic and international tenants are keen to find rental properties.”
The UK is home to the sixth highest proportion of renters of all 28 European nations, with 35% of the nation reliant on the sector to put a roof over their heads.
There should also be plenty of stock to satisfy this demand, as the latest figures show there are currently over 100,000 rental properties listed across the UK’s 23 major cities despite wider market conditions.
Spotahome believes the UK rental market will see a swift return to form now that industry restrictions have eased.
Kuecker added: “In the current climate, tenants are embracing the additional sense of safety that comes with contactless viewings as it allows them to progress with their search without visiting the property. This is already something that the latest generation of renters are becoming accustomed to and for future generations, a shift towards 100% digital renting could quite easily become the new norm.
“Our foundation as a business has always facilitated a completely digital approach to renting. However, it’s highly likely that the events of the last few months will now act as a catalyst within the property sector, accelerating the digitalisation seen over previous years and evolving industry practices to operate on an almost completely digital basis.”
| Rankings – average monthly change in total visits and engagement between November 2019 to April 2020 | ||
| Nation | Property portal | Average monthly change (Nov19 to Apr20) |
| Austria | https://www.immobilienscout24.at/ | 7.8% |
| Finland | https://www.etuovi.com/ | 7.8% |
| Sweden | https://www.hemnet.se/ | 7.4% |
| Estonia | https://www.kv.ee/ | 5.9% |
| Czechia | https://www.sreality.cz/ | 5.9% |
| Denmark | https://www.boligsiden.dk/ | 4.3% |
| Netherlands | https://www.funda.nl/ | 4.0% |
| Portugal | https://www.idealista.pt/ | 2.8% |
| Hungary | https://ingatlan.com/ | 1.6% |
| Germany | https://www.immobilienscout24.de/ | 1.2% |
| Romania | https://www.imobiliare.ro/ | -0.2% |
| Lithuania | https://www.aruodas.lt/ | -0.2% |
| Slovakia | https://www.nehnutelnosti.sk/ | -0.5% |
| Poland | https://www.otodom.pl/ | -0.7% |
| Latvia | https://www.city24.lv/ | -1.3% |
| Ireland | https://www.daft.ie/ | -1.5% |
| Spain | https://www.idealista.com/ | -1.8% |
| Cyprus | https://www.bazaraki.com | -2.0% |
| Bulgaria | https://www.imot.bg/ | -2.0% |
| France | https://www.seloger.com/ | -3.3% |
| United Kingdom | https://www.rightmove.co.uk/ | -4.1% |
| Malta | https://www.remax-malta.com/ | -5.0% |
| Croatia | https://www.njuskalo.hr | -5.2% |
| Slovenia | https://www.nepremicnine.net/ | -5.6% |
| Luxembourg | https://www.immotop.lu/ | -6.2% |
| Italy | https://www.immobiliare.it/ | -6.3% |
| Belgium | https://www.immoweb.be | -6.7% |
| Greece | https://www.xe.gr/property/ | -7.2% |
| Portal visits and engagement over time sourced from Similarweb |
| Nation | Percentage of people that rent (%) |
| Germany | 48.5 |
| Austria | 44.6 |
| Denmark | 39.5 |
| Sweden | 35.9 |
| France | 34.9 |
| United Kingdom | 34.9 |
| Netherlands | 31.0 |
| Cyprus | 29.9 |
| Ireland | 29.7 |
| Luxembourg | 28.8 |
| Finland | 28.4 |
| Italy | 27.6 |
| Belgium | 27.3 |
| Greece | 26.5 |
| Portugal | 25.5 |
| Slovenia | 24.9 |
| Spain | 23.7 |
| Czechia | 21.3 |
| Latvia | 18.4 |
| Malta | 18.4 |
| Estonia | 17.6 |
| Bulgaria | 16.4 |
| Poland | 16.0 |
| Hungary | 14.0 |
| Lithuania | 10.1 |
| Croatia | 9.9 |
| Slovakia | 8.7 |
| Romania | 3.6 |
| Source: Trading Economics |
| City | Total listings (May 2020) |
| London | 53,459 |
| Oxford | 1,460 |
| Cambridge | 810 |
| Manchester | 5,160 |
| Liverpool | 3,164 |
| Birmingham | 5,184 |
| Nottingham | 1,846 |
| Leeds | 4,981 |
| Sheffield | 2,797 |
| Leicester | 1,906 |
| Newcastle | 3,805 |
| Southampton | 2,619 |
| Portsmouth | 943 |
| Bournemouth | 1,073 |
| Plymouth | 951 |
| Bristol | 1,481 |
| Cardiff | 2,508 |
| Swansea | 1,188 |
| Newport | 193 |
| Glasgow | 1,690 |
| Edinburgh | 2,521 |
| Aberdeen | 1,256 |
| Belfast | 24 |
| All cities | 101013 |
| Rental stock figures sourced from Rightmove and Zoopla |