Rental market turnover is as low as 10% in some UK postcodes, Zero Deposit reveals.
Zero Deposit’s latest market insight shows that low tenant demand has hit the margins of both letting agents and landlords.
Analysis of rental market turnover by postcode shows that on average 78% of the entire UK rental market stock is currently rented to tenants in the country.
Although the market as a whole benefits from high tenant demand, this is not the case in every zip code.
Three of the postcodes with the lowest turnover in the rental market are all in Leeds.
In the LS3 postcode, only 10% of rental stock is currently let, rising to just 11% in both the LS4 and LS6 postcodes.
The analysis further showed that the top 10 also consists of postcodes of Nottingham (NG1), Gwynedd (LL57), Plymouth (PL6), West Lindsey (LN2), Rhondda Cynon Taf (CF37) and Warwick (CV31), with rental turnover remains behind. between 15% and 20%.
Zero Deposit says that while some letting agents have the pleasure of tenant waiting lists that allow them to rent out properties within hours of listing them, many more agents face the uphill challenge of finding suitable tenants to replenish the stock on their books .
Zero Deposit chief executive Sam Reynolds said: “For the most part, rental properties are in high demand, but as with all aspects of the property market, this metric can vary drastically from postcode to postcode.”
“Tenants can be more selective and it is no surprise that there are increasing cases of early exits where a superior property becomes available.”
“We found that 79% of renters would choose Zero Deposit over a cash deposit if given the opportunity, and so the ability to offer such an option is just one tool in the letting agent’s arsenal when it comes to is about providing access to the whole. market for their landlords. Initial costs for tenants start at just £7.50 plus set-up fees, so significantly more attractive than other options.
“Not only does it allow them to remove the initial barrier to renting, increasing demand, but it can also help to streamline the end of the rental process, meaning agents can get their stock back on the market and can find a new tenant more quickly. ”