The growth of PRS in London has altered tenant demographics. Who’s moving in? and why?

The growth of PRS in London has altered tenant demographics. Who’s moving in? and why?

Times when the PRS tenants were picking rental merely as a way to wait until they’re ready to take a mortgage are long gone. The renting lifestyle has become a conscious choice for many – and these people have specific wants and needs. If your property fulfils them, you might get yourself a fantastic, well-paid tenant for many years, not just for your usual 12 months.

Demand for the private rented sector: 
The proportion of households in the PRS sector is said to rise to 22% by 2023. Previously, young professionals (25 – 34) made up the largest proportion of renters, this has now been taken over (though marginally) by 35-49 years old. This age group is expected to show the biggest growth in this sector over the upcoming years as obtaining a mortgage is becoming harder and harder. Home buying still remains a hurdle for many individuals. 
 
This correlates with the rise in the professional-managed PRS units. Currently, there are around 30,000 units already completed with a supply pipeline of around 110,092 under construction or in planning. With buy-to-let landlords leaving the market and fewer mortgages being taken out, this is necessary to meet the increasing demand for rental apartments. 
 
Different kinds of renters: 
 
The key to closing more deals is to better understand who you’re selling to. “When you work in agencies, you see every day how important the agents are, that people still want to deal with people and that it’s people who make things happen,” says Jaimie Beers, Managing Director of Madley Property Services in London.
 
More and more individuals living in the UK are living in a rental property and this is expected to continue increasing for the next 3 years. It is important to understand what kind of tenants you’re working with to better understand how to cater to their needs.
 
According to a survey, the biggest proportion of tenants in the private rental sector at the moment are aged between 35 – 49. With homeownership becoming more and more difficult this age group is likely to grow. This age group is closely followed by young professionals aged between 25 – 34. 
 
The survey has found these different tenant groups in these age groups: 
 

 
In London, Sharers makeup 27% of the rental market, followed closely by the nesters at 23%. With over 55% of the applicants surveyed stating that they are renting because they do not have the deposit for a mortgage. 
 
So what are these renters looking for and how can you target them? 
 
Tenants want: 
  1. Affordable housing 
  2. Homes that are within 5 miles of their current residence 
  3. Homes that are within a 30-40 minute commute from work 
 
Targeting these tenants requires the following: 
  • Finding properties that match their requirements (location and price-wise)
  • Internal amenities are very important for this age group
  • Being close to transport links is also important 
 
Key Driver for Remaining in Rented Property 
  • Affordability
  • Lack of mortgage deposits
 
Affordability is the biggest deciding factor
 
A survey was conducted and tenants were asked what was ONE of the most important factors when choosing a property. 
  • 61% stated that the rent is within their budget 
    • This is why it’s important to understand your applicant’s affordability range and ensure that you don’t show them properties that are over their budget. 
    • Next, is finding properties that fit the applicant’s requirements within that budget – XChange has a solution for that. 
  • 23% stated that the location of the property was the most important
    • Living close to transport links and work is also important for individual renters.
  • 10% stated the size of the property was the most important. 
 
Other factors when choosing a location to live in? 
 
 
So how can you use this:
 
One of the best ways to build a strong relationship with your applicants is to simply listen to them, by listening to them you’ll understand how they work and be better suited to find them a property that they will close on. Remember, it’s all about building a strong relationship with the applicant. Keeping this in mind, XChange has a solution to help you make this process more efficient. 
 
At XChange our tech solution recommends properties for your applicants that match their requirements. 
 
Our applicant matching solution works to find you more properties for applicants that are sitting in your CRM, or vice versa. By inputting your applicant’s requirements we can match them to properties listed on XChange. We’ve created a centralised platform where you can do all of this in one go. 
 
We partner with Independent Agents and growing agencies because we believe that compared to the bigger corporations, you have the ability to close deals faster and provide the leads with better customer service than premium corporate agencies can provide.
 
Want to get started and see if your Agency qualifies, contact us through the form below and we’ll give you a call.
 
 
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Are people moving out of Central London to West London?

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With the current pandemic changing where people want to live, we set out on a journey to see just how much consumer preferences have changed and what this means for the industry. With more and more people looking for space find themselves looking for properties further and further from Central London. 

Across the UK, rental searches were up by 34% in August compared to the same time last year. This increase is likely a reflection of the lack of movement during lockdown and an increase of activity from tenants as they reconsider what it is they are looking for from a home. 

Previous hotspots are now seeing people moving out as renters preference has changed. Now opting for homes that are bigger and have more outdoor space, more and more people are looking for homes in the outer areas of London. Especially in West London.  

Rightmove’s Miles Shipside said: “No one knows what the future holds, but at the moment, it’s clear to see that places with a slower pace of life are top of renters’ home-hunting wishlists.”

More tenants who were moving were going to bigger properties than before the pandemic, it found, with 34% of tenants going somewhere with at least one extra bedroom.

Almost two-thirds of Londoners who moved to somewhere bigger left the capital, typically moving somewhere cheaper and leaving unlet homes in the city. Younger renters are also opting for studios or 1 beds rather than having to share an apartment. 

We spoke to Louise Reilly the Letting Manager at Century21 – Kew. 

Shafaq: “Have you noticed a shift in where people are moving?”

Louise: “For us, we have seen a constant and steady demand for properties in West London. We have properties in North and South West, as well, all areas which are as in demand as they were before the pandemic. There are many people who love the West and we find that people are moving out of the small apartments to places that have a bit more space and have a bit of greenery. Generally people are moving towards outer London. They don’t want to stay in prime central london apartments because they are smaller or they are just too expensive.

Shafaq: “Have you noticed a shift in what renters are looking for or why they’re moving?”

Louise: “People’s reasons for moving it’s normally because either the family is growing generally people just want more space to grow. We’ve seen a decrease in 2 person occupation. A lot less sharers, which is a strange one. And is unfortunate for my landlords as many have multiple occupancy homes.

Outside space is also a massive reason, people are moving away from little flats and are looking for places where they can get some fresh air, even if it is a shared outside space.”

Shafaq: “How has this demand boom affected Century21-Kew?” 

Louise: “For us, the boom hasn’t changed how we handle our clients, but rather it’s been about us revamping how we work and how we use our team. Our days look a lot different now and we have a lot more dual roles especially since we’ve seen a massive increase in enquiries for sales properties. Properties that have been on the market for a year moved within weeks of the stamp duty announcement.

To meet this demand we’ve actually had to hire more people because there are just so many buyers.

However, the impact of this on rentals has been quite different. Affordability and rental value has definitely decreased. We thrive in the mid-range properties (properties priced between £1700-£1900) and the demand for these properties is practically gone. With landlords in the area reducing their rent themselves this has pushed the rental value down by upto 20% in some areas and this has had a domino effect. People want larger properties, more outdoor space, but their budget hasn’t really increased as much.”

Shafaq: “What is your outlook on the market for the next couple of months?” 

Louise: “Sales market will continue to be quick and fast for the next couple of months, and till the Stamp Duty incentive lasts. There’s enough buyers in the market and keen sellers. Once the sales boom subsides a little the increase in the new BTL landlords will help create a boom in the rental market which the hope is will help increase the value of rental properties. To fully “recover” and get back to a level of some normalcy will take at least a year. The rental market has historically always been stable so this decline has been a shock, but I am confident that this will return to normal in a year”.  

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4 tools every estate agent needs to grow their business

Xchange by houzen

With the current limited mobility that is imposed on everyone, it’s normal to see real estate portals like Rightmove and Zoopla become increasingly saturated and flooded with agencies and listings. This makes it harder for your agency to stand out. In order to build a lasting relationship with your customers it is important to provide them with the best experience possible. 

Why face being lost in a swarm of competition when you could be looking for new tools and resources that can help your business stand out. 

Below we’ve curated a list of 4 tools we believe every agent needs to stand out in the competitive real estate market. 

 

1 – XChange

Of course we had to talk about ourselves first,  XChange is a property trading platform allowing you to quickly match your applicants to relevant properties to close more deals. Simply input all the relevant information and let the matching process do the work for you. 

This gives your agency a competitive advantage, allowing you to maximize potential transactions and reducing lead wastage. It also enables you to broaden your horizon, that is, to be able to source properties outside your operating area, and realistically, enabling you to be able to close deals in all four corners of a city.

 

2 – HomeViews 

HomeViews offers you a centralised base of reviews, coming from residents and property experts. Having accurate and in depth information about a property is incredibly important to market your stock and highlight it above the rest, to make it stand out in a blur of properties. 

This is why HomeViews aims to provide you with the information, sharing relevant insight on residential developments. HomeViews also offers you opportunities to advertise your business and available properties, making you more visible to the public. The platform is free to read, leave or respond to reviews.

3 – Vaboo

Vaboo is a platform that enables you to entice your clients with benefits, allowing you to stand out. They create a tenant reward platform that gives access to exclusive offers, national discounts and regular prize draws to help agents build trust, stand out and collect insights.

Additionally, by keeping your tenants happy these tenants will eventually become buyers. This customer retention is crucial to help your agency increase brand loyalty. 

4 – CoreLogic

CoreLogic offers 3D virtual property conversions of your listings, allowing you to accurately translate your property to prospective clients, and give them a sense of immersion that’s completely virtual and distanced. 

The affordable 3D virtual tour is a better alternative to traditional photography that helps your properties shine and stand above the rest. 

In times where clients might not be as comfortable organising viewings, this tool builds the bridge between your property and your prospective clients, allowing them to experience the property in an immersive way, at any time from anywhere, in return boosting the engagement with your stock and your sales potential.

 

Whether we’re talking about our property matching platform, CoreLogic’s enhancement of your virtual ads or HomeViews’s database of free and insightful information, trying out these new tools could be your solution to overcome and overshine your competition. 

 

Now more than ever is the time to broaden your inventory of tools to help you on your journey to success in this market.

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What Will Happen to Student Accommodation

Xchange by houzen

The post pandemic opening of the lettings market hasn’t shown to be too promising as people were expecting. Knight Frank recorded a 0.9% drop in the prime central London rental market in the past month alone.  

As supply remains constant, and demand is falling short compared to previous years, it seems that student demand has a big implication on the lettings market in the current timeframe. 

The pandemic and its impact

Normally, as universities and colleges start in September, the lettings market sees its sharpest increase in demand for the year, but as most universities have announced a transition to online education, students might be looking to postpone their moving plans until the second university term in January. 

We spoke to Ben at Citian Wharf, who told us that he had seen a decrease in demand from September of last year, but the amount of inquiries for January had been much more than those of 2019. 

Despite not knowing what will happen in September, UCAS published some data last month regarding undergraduate applicants for the forthcoming 2020/21 year.

The data showed a 2% increase in applicants overall including a 10% increase in applicants from Non-EU countries

Additionally:

  • Non-EU applicants are the highest they have ever been
  • 89,000 applicants this year, 58% increase in ten years
  • Chinese applicants made up nearly 25,000 of those
  • Indian applicants made up 7,600.

Are students changing where they want to live?

Citian Wharf saw that graduate students are reorienting towards university halls instead of private accommodation, due to the fact that it is more budget friendly, and that roommates aren’t all back meaning they’re looking more for one bed studios instead of flat shares.

Local students, ie UK nationals seem to be choosing to stay home for the time being, as university life takes a virtual turn. The economic uncertainty is also a factor that plays into this, as it is much easier to stay home in order to save money. 

International students don’t see things that way though. With applications still rolling in, the international community of students still value London as a hub of education, and hence will still need accommodation. 

Appetite from overseas students remains

As the student lettings market takes a sharp turn due to all the unforeseen circumstances, it seems the best thing to do is to reorient your efforts towards where the demand is. 

In this case, it means captivating demand from the east, where it is the most constant and reliable. 

At XChange, we’ve seen an inflow of students that are moving from Asia and will be moving in the end of September, and a larger influx by the start of the new year in January. 

Our expertise in the London market as well as our strong ties with the east has put us in a good position facing this student accommodation problem, and here’s how you can profit from it too. 

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Is London’s PRS focus in 2020 shifting to the East?

East London | Canary Wharf

Is London’s PRS focus in 2020 shifting to the East?

With the rise in demand for rental properties, one wonders how is London going to meet the incoming demand for rental properties? Reports show that the Private Rental Sector is expected to grow by 22% till 2023. The development of Canary Wharf 30 years ago served as the catalyst of completely changing the East End. Tower Hamlets represents the borough that has has seen the most change, making it London’s fastest growing borough. More than 500 new tall buildings are in the pipeline across Greater London, with half to be created in East London. With the soon to be created Crossrail, the East End will be even better connected to the West.
 
 Canary Wharf. 1992 (Left). 2017 (Right).[/caption]
 
Who’s moving to East London?

Young professionals and couples (aged between 25 – 49) are amongst the biggest group of renters in London. This borough is made up of a diverse group of international migrants, with the census showing that 43% of the residents were born outside of Britain. This group of renters is made up of the following:
These individuals are looking for properties that are:
  1. Affordable
  2. Close to their work
A recent survey by Zoopla shows that a quarter of customers don’t use online portals when conducting their property search. Instead they rely on the other channels. One of which is receiving property updates from agents that match the criteria of properties that they are looking for. Though the use of portals is still very important for Agents to market their properties, it is just as important to develop your email marketing campaigns as well as develop your social media channels.
 
What should you look forward to in East London?
 
With the wide spread regeneration in East London, there are many new developments that are catering to the renting population. Providing more than just a home but rather a lifestyle. Here are a few developments to keep your eye on:

A BTR development consisting of 294 apartments and provides residents with luxury amenities without being in Central London.

975 homes and retail space just a stones throw from Canning Town Station.

A 65 acre space that combines living with nature.

High-end rental properties providing close links to the city. 

Not working on these properties yet?
 
To get instructed on some of these properties, click here
 
At XChange we partner with Independent Agents with an aim to empower them and to help them grow their businesses in an environment that is slowly becoming crowded by the bigger corporate agents. We believe Independent Agents have the power to close deals faster and provide the best level of service for Applicants. By helping agents access properties that they would not normally be instructed on we want to provide an avenue for these agents to perform and grow their business. 
 
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Are people moving out of Central London to West London?

Xchange by houzen

With the current pandemic changing where people want to live, we set out on a journey to see just how much consumer preferences have changed and what this means for the industry. With more and more people looking for space find themselves looking for properties further and further from Central London. 

Across the UK, rental searches were up by 34% in August compared to the same time last year. This increase is likely a reflection of the lack of movement during lockdown and an increase of activity from tenants as they reconsider what it is they are looking for from a home. 

Previous hotspots are now seeing people moving out as renters preference has changed. Now opting for homes that are bigger and have more outdoor space, more and more people are looking for homes in the outer areas of London. Especially in West London.  

Rightmove’s Miles Shipside said: “No one knows what the future holds, but at the moment, it’s clear to see that places with a slower pace of life are top of renters’ home-hunting wishlists.”

More tenants who were moving were going to bigger properties than before the pandemic, it found, with 34% of tenants going somewhere with at least one extra bedroom.

Almost two-thirds of Londoners who moved to somewhere bigger left the capital, typically moving somewhere cheaper and leaving unlet homes in the city. Younger renters are also opting for studios or 1 beds rather than having to share an apartment. 

We spoke to Louise Reilly the Letting Manager at Century21 – Kew. 

Shafaq: “Have you noticed a shift in where people are moving?”

Louise: “For us, we have seen a constant and steady demand for properties in West London. We have properties in North and South West, as well, all areas which are as in demand as they were before the pandemic. There are many people who love the West and we find that people are moving out of the small apartments to places that have a bit more space and have a bit of greenery. Generally people are moving towards outer London. They don’t want to stay in prime central london apartments because they are smaller or they are just too expensive.

Shafaq: “Have you noticed a shift in what renters are looking for or why they’re moving?”

Louise: “People’s reasons for moving it’s normally because either the family is growing generally people just want more space to grow. We’ve seen a decrease in 2 person occupation. A lot less sharers, which is a strange one. And is unfortunate for my landlords as many have multiple occupancy homes.

Outside space is also a massive reason, people are moving away from little flats and are looking for places where they can get some fresh air, even if it is a shared outside space.”

Shafaq: “How has this demand boom affected Century21-Kew?” 

Louise: “For us, the boom hasn’t changed how we handle our clients, but rather it’s been about us revamping how we work and how we use our team. Our days look a lot different now and we have a lot more dual roles especially since we’ve seen a massive increase in enquiries for sales properties. Properties that have been on the market for a year moved within weeks of the stamp duty announcement.

To meet this demand we’ve actually had to hire more people because there are just so many buyers.

However, the impact of this on rentals has been quite different. Affordability and rental value has definitely decreased. We thrive in the mid-range properties (properties priced between £1700-£1900) and the demand for these properties is practically gone. With landlords in the area reducing their rent themselves this has pushed the rental value down by upto 20% in some areas and this has had a domino effect. People want larger properties, more outdoor space, but their budget hasn’t really increased as much.”

Shafaq: “What is your outlook on the market for the next couple of months?” 

Louise: “Sales market will continue to be quick and fast for the next couple of months, and till the Stamp Duty incentive lasts. There’s enough buyers in the market and keen sellers. Once the sales boom subsides a little the increase in the new BTL landlords will help create a boom in the rental market which the hope is will help increase the value of rental properties. To fully “recover” and get back to a level of some normalcy will take at least a year. The rental market has historically always been stable so this decline has been a shock, but I am confident that this will return to normal in a year”.  

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27 Finsbury Circus

London, EC2M 5NT

020 8064 1431

Xchange by houzen

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4 tools every estate agent needs to grow their business

Xchange by houzen

With the current limited mobility that is imposed on everyone, it’s normal to see real estate portals like Rightmove and Zoopla become increasingly saturated and flooded with agencies and listings. This makes it harder for your agency to stand out. In order to build a lasting relationship with your customers it is important to provide them with the best experience possible. 

Why face being lost in a swarm of competition when you could be looking for new tools and resources that can help your business stand out. 

Below we’ve curated a list of 4 tools we believe every agent needs to stand out in the competitive real estate market. 

 

1 – XChange

Of course we had to talk about ourselves first,  XChange is a property trading platform allowing you to quickly match your applicants to relevant properties to close more deals. Simply input all the relevant information and let the matching process do the work for you. 

This gives your agency a competitive advantage, allowing you to maximize potential transactions and reducing lead wastage. It also enables you to broaden your horizon, that is, to be able to source properties outside your operating area, and realistically, enabling you to be able to close deals in all four corners of a city.

 

2 – HomeViews 

HomeViews offers you a centralised base of reviews, coming from residents and property experts. Having accurate and in depth information about a property is incredibly important to market your stock and highlight it above the rest, to make it stand out in a blur of properties. 

This is why HomeViews aims to provide you with the information, sharing relevant insight on residential developments. HomeViews also offers you opportunities to advertise your business and available properties, making you more visible to the public. The platform is free to read, leave or respond to reviews.

3 – Vaboo

Vaboo is a platform that enables you to entice your clients with benefits, allowing you to stand out. They create a tenant reward platform that gives access to exclusive offers, national discounts and regular prize draws to help agents build trust, stand out and collect insights.

Additionally, by keeping your tenants happy these tenants will eventually become buyers. This customer retention is crucial to help your agency increase brand loyalty. 

4 – CoreLogic

CoreLogic offers 3D virtual property conversions of your listings, allowing you to accurately translate your property to prospective clients, and give them a sense of immersion that’s completely virtual and distanced. 

The affordable 3D virtual tour is a better alternative to traditional photography that helps your properties shine and stand above the rest. 

In times where clients might not be as comfortable organising viewings, this tool builds the bridge between your property and your prospective clients, allowing them to experience the property in an immersive way, at any time from anywhere, in return boosting the engagement with your stock and your sales potential.

 

Whether we’re talking about our property matching platform, CoreLogic’s enhancement of your virtual ads or HomeViews’s database of free and insightful information, trying out these new tools could be your solution to overcome and overshine your competition. 

 

Now more than ever is the time to broaden your inventory of tools to help you on your journey to success in this market.

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27 Finsbury Circus

London, EC2M 5NT

020 8064 1431

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books in a library | XChange Logo

What Will Happen to Student Accommodation

Xchange by houzen

The post pandemic opening of the lettings market hasn’t shown to be too promising as people were expecting. Knight Frank recorded a 0.9% drop in the prime central London rental market in the past month alone.  

As supply remains constant, and demand is falling short compared to previous years, it seems that student demand has a big implication on the lettings market in the current timeframe. 

The pandemic and its impact

Normally, as universities and colleges start in September, the lettings market sees its sharpest increase in demand for the year, but as most universities have announced a transition to online education, students might be looking to postpone their moving plans until the second university term in January. 

We spoke to Ben at Citian Wharf, who told us that he had seen a decrease in demand from September of last year, but the amount of inquiries for January had been much more than those of 2019. 

Despite not knowing what will happen in September, UCAS published some data last month regarding undergraduate applicants for the forthcoming 2020/21 year.

The data showed a 2% increase in applicants overall including a 10% increase in applicants from Non-EU countries

Additionally:

  • Non-EU applicants are the highest they have ever been
  • 89,000 applicants this year, 58% increase in ten years
  • Chinese applicants made up nearly 25,000 of those
  • Indian applicants made up 7,600.

Are students changing where they want to live?

Citian Wharf saw that graduate students are reorienting towards university halls instead of private accommodation, due to the fact that it is more budget friendly, and that roommates aren’t all back meaning they’re looking more for one bed studios instead of flat shares.

Local students, ie UK nationals seem to be choosing to stay home for the time being, as university life takes a virtual turn. The economic uncertainty is also a factor that plays into this, as it is much easier to stay home in order to save money. 

International students don’t see things that way though. With applications still rolling in, the international community of students still value London as a hub of education, and hence will still need accommodation. 

Appetite from overseas students remains

As the student lettings market takes a sharp turn due to all the unforeseen circumstances, it seems the best thing to do is to reorient your efforts towards where the demand is. 

In this case, it means captivating demand from the east, where it is the most constant and reliable. 

At XChange, we’ve seen an inflow of students that are moving from Asia and will be moving in the end of September, and a larger influx by the start of the new year in January. 

Our expertise in the London market as well as our strong ties with the east has put us in a good position facing this student accommodation problem, and here’s how you can profit from it too. 

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27 Finsbury Circus

London, EC2M 5NT

020 8064 1431

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