What Renters Want: Rental Market Shifts
Over the past few years, the rental market has undergone dramatic changes, adapting to the global pandemic coming and going, the consequent change in the way we work, and the shifting demands of renters. As a result, keeping up to date with market trends is the linchpin of any successful Build-to-Rent strategy. Home Made’s unparalleled data set, gathered from over 120,000 enquiries, gives our clients the access to the right insights to make sure investments and property designs match the needs of today's renters.
Pets and the demand for Furry Companionship is Falling
The ability to keep a furry friend can be a key decision for many tenants when choosing their next home, and the choice to allow them can be a tough decision for any Landlord. In previous years, both landlords and property managers have been reluctant to allow pets, especially over concerns over damage and noise, but with the pandemic, these attitudes often relaxed to match renters’ demands.
From Home Made’s data-driven insights, we can see that the demand for pet-friendly properties rose to 17%, as a significant proportion of people sought out companionship from a cat or a dog in an increasingly separated world. However, in the post-pandemic world, and with the rediscovered freedoms and the return to the office, the demand for pet-friendly properties has dropped by a massive 7 percentage points, bringing it back down to just 10%.
Tenants' need for Parking is Falling too
Owning a private form of transport in London comes with many challenges, and primary of these is parking. As a result, it can be a key consideration for a significant demographic of renters who may rule out a development based on the inclusion or lack of this facility. From the data gathered on London Renters’ demands, our report showed an 8 percentage point drop, going from 22% in 2022, down to 14% this year.
This decrease can be down to a number of factors, the most prominent is the return of people to the city centre, where owning a personal car is considered a luxury, especially with the easy access to the bus and tube network in London. Add on to this, the increasing cost of car ownership in London, including the cost of fuel and the imminent expansion of the ULEZ zone, you can see why the demand for parking is falling.
Many renters are also making use of car share clubs like ZipCar and Enterprise Car Club.
Furnished, Part-Furnished or Unfurnished?
Understanding the demand for furnished or unfurnished properties is integral to both property investment and development. While there isn’t a correct answer, the decision on what types of properties our clients' offer can impact the demographics of tenants attracted.
From the data gathered by Home Made’s insight suite, we are able to see a large shift in the demands from renters for furnished flats. We believe the current cost of living crisis has driven this change, rising 13 percentage points to a whopping 79% of renters. Interestingly, there has also been a smaller, but significant rise in those looking for unfurnished, rising to 15%. These shifts have come at the expense of people who were previously ‘flexible’ to un/furnished options. Where previously we have seen a quarter of renters be flexible in the demand, that has now dropped to just 6%.
Conclusion
Finally, Build-to-Rent developers must stay ahead of the curve in order to meet the evolving demands of renters. From pet-friendly policies, parking and unit types, renters are seeking homes that reflect their unique lifestyles. By taking advantage of Home Mades’ market insights, you can ensure you build strong and more sustainable communities that will thrive for years to come.
To speak to one of our leading market experts, reach out to Jo@Home-made.com
