Lettings market activity throughout June was significantly higher than recorded at the same time last year, the latest Rental Index from Goodlord has shown. As a result, rental costs are rising in the majority of regions and void periods are coming down, as tenants compete for new properties and the industry continues to see unprecedented demand after months of inactivity.

“I think the current situation proves that lettings is the most valuable part of an agency business,” says Neil Baldock, Director at the Chelmsford-based estate agency, Charles David Casson. “One: because it’s what gives you a valuable asset that you can sell. And two: because the cash flow from it will keep us going through these times.”

Lockdown forced the entire lettings industry (along with the rest of the world) into digital transformation and the “momentum behind digital-experience adoption is unlikely to reverse,” suggests the Harvard Business Review, while McKinsey notes that “there could be lasting changes to consumer attitudes towards physical distance [making it] possible to imagine a world of business—from the factory floor to the individual consumer—in which human contact is minimised.”

“I believe that businesses that can adapt and provide a higher level of customer service will come out with this in a better place than when we went into it,” says Richard Poole, Partner at Michael Poole Estate Agents, on the topic of the pandemic.

Agencies that succeed in the post-lockdown world will need to adapt their service offering to meet a completely different set of needs and expectations. “Consumer research by Nielsen asserts that, after the crisis, people’s daily routines will be altered by a new cautiousness about health, suggesting that some shifts in behaviour could be long-term,” notes Deloitte.

This article was originally published on 15 June 2020. Although we endeavour to keep our coronavirus (COVID-19) content as up to date as possible, the situation is rapidly changing, so please ensure you refer to gov.uk for the latest advice and information.

The consensus is clear: if you want your business to survive and thrive in the post-pandemic world, you need to be planning for multiple versions of the future. Don’t assume that just because we’ve come through the peak of COVID-19, it can’t happen again. Any plans for your agency in the short, medium, and long-term should reflect the ambiguity ahead.

Almost half of property professionals describe the process of completing pre-tenancy admin as “painful”, Goodlord found in its State of the Industry survey. Forty percent of respondents said that completing pre-tenancy administration was “somewhat painful” and a further 8% said described it as “very painful”. 

This article was updated on 24 September 2020. Although we endeavour to keep our coronavirus (COVID-19) content as up to date as possible, the situation is rapidly changing, so please ensure you refer to gov.uk for the latest advice and information.

The government has changed the law to increase notice periods to six months and confirmed that possession proceedings will resume on 21 September 2020. The only exceptions to the six-month notice period are the most egregious cases, including where tenants have demonstrated anti-social behaviour or committed fraud, where notice periods have been shortened. In these cases, "notice periods must be at least 4 weeks where over six months of rent is due (if less than 6 months is owed, then 6 months’ notice must be given)." A "winter truce" on evictions also means that no evictions will take place between 11 December 2020 and 11 January 2021.

This article was originally published on 8 June 2020. Although we endeavour to keep our coronavirus (COVID-19) content as up to date as possible, the situation is rapidly changing, so please ensure you refer to gov.uk for the latest advice and information.