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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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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Find us in London

27 Finsbury Circus

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020 8064 1431

Xchange by houzen

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My Real Estate Story: Neelay Jivan

Xchange by houzen

Meet Neelay Jivan, the branch manager at Felicity J. Lord in Clerkenwell. With a keen eye and interest in property from a young age Neelay joined Felicity J. Lord 9 years ago and worked to manage a branch in Clerkenwell. We spoke of how the branch adjusted to the pandemic and how in order to really grow the industry needs to change. Here is his story:   

neelay-full-1-mp4


Share on facebook
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Recent Posts

Find us in London

27 Finsbury Circus

London, EC2M 5NT

020 8064 1431

Xchange by houzen

Facebook


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Linkedin

Read More »

My Real Estate Story: Ilva Pamovska

Xchange by houzen

Meet Ilva Pamovska the Director at Prime Property Care. Ilva shares her story of resilience and a decision to do things differently, to eventually starting her own Property Management firm. We spoke of how the pandemic impacted how tenant demand has changed. Here is her story: 

ilva-6-mp4


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Find us in London

27 Finsbury Circus

London, EC2M 5NT

020 8064 1431

Xchange by houzen

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