Dorset experiences unprecedented demand for long-term rental properties, resulting in a 40% annual increase for tenants.
An increasing disparity between the number of tenants hoping to secure a long-term tenancy and the number of vacant rental properties in Dorset has resulted in the highest rent hike witnessed for many years.
A notable rise in the number of families and young professionals migrating to the coast and country from the City, due to the pandemic, has contributed to the increase in demand, while recent tax changes for landlords and more attractive yields from holiday lettings has contributed to a reduction in supply.
Katie Starkey, Head of Lettings at DOMVS estate agency says “We are remarketing the same properties for 10-15% more than last year, but due to demand, as soon as they are launched, we are inundated with enquiries and agreeing tenancies for a further 25% in excess of the asking price. There simply isn’t enough property to satisfy the demand, which is great news for landlords, but not so much for tenants”.
In the last week, DOMVS has seen rental prices rise by 40% in Weymouth, an increasingly popular, vibrant seaside town with direct train links into London, and does not see this imbalance in supply and demand easing before the summer is out.
“Many landlords are currently cashing in on the hoards of holiday makers who would usually be abroad at this time of year, as yields for holiday lets have been staggeringly high this summer. However, we suspect the shortage of supply will ease when these properties come back to the market in September either as a long-let, or on a six-month contract if the landlord plans to re-let as a holiday venture next season.”
For the latter, landlords can generally expect to receive a lower rental income, due to the shorter rental term and being fully furnished – both of which will generally attract less interest. That said, the DOMVS Relocations Team are finding short-term rental opportunities a convenient stop-gap for would-be buyers who have sold their London abodes and want to be in the area, ready to snap up a home as soon as it comes onto the market. Equally, these short-term renters can often find themselves a beautiful property to live in temporarily that might ordinarily have been out of their price range.
“We can wholeheartedly understand why so many people want to move to our beautiful part of the country, but rent increases at this level aren’t sustainable in the long-term. Whilst now is a great time for landlords to make hay, we’re hoping the supply and demand imbalance improves in the Autumn, with more options available for the tenants who are currently desperate to secure a home”.
DOMVS has let just three properties in the last week and the like-for-like annual results show the following:
|Weymouth Market||£2020 Rental||£2021 Marketed Price||£Agreed Tenancy||% Increase|
|Property example 1||£900 pcm||£1,000 pcm||£1,250 pcm||39%|
|Property example 2||£800 pcm||£850 pcm||850.00||6.25%|
|Property example 3||£1500 pcm||£1600 pcm||£1600 pcm||6.7%|
Head of Lettings, DOMVS
DOMVS is an award-winning estate agency with three offices providing sales, lettings and land advisory services across the entire Dorset county. With a reputation built on trust, integrity and knowledge, DOMVS has been exceeding its clients expectations since 2005.