Summary of "The impacts of the cost of living crisis on the lettings industry" 2024 by FlatFair

1- Overall Impact:

The escalating cost of living has significantly impacted the lettings industry, affecting both landlords and tenants.

2. Effects on Landlords:

 - Soaring interest rates and increased rent arrears are major challenges.

- Some landlords are exiting the market, de spite high demand for rental properties.

 - Reduced development of new homes is exacerbating the housing supply shortage.

3. Effects on Tenants:

 - Tenants are experiencing reduced disposable income, leading to longer stays in current rentals.

 - Higher interest rates discourage homeownership, increasing competition in the rental market.

4. Key Trends:

- Void Periods: Decreasing, with properties being rented out faster.    

- Rent Arrears: Increasing, with many landlords experiencing late payments.

 - Increased Competition: More inquiries per property and frequent "bidding wars.

- Longer Tenancies: Tenants are staying longer due to high costs and competition.  

- All-Inclusive Bills: Growing demand for predictable monthly expenses.

- Guarantor Requests: Rising due to tenant affordability issues.

- Deposit Alternatives: Higher demand for lower upfront cost options like flatfair's No Deposit solution.

5. Future Outlook:

- Unfavorable, with a widening gap between salary growth and rent prices.

- Potential decrease in landlord numbers, further limiting the supply of rental homes.

This summary captures the main impacts and trends within the lettings industry as a result of the cost of living crisis, emphasizing the challenges faced by both landlords and tenant.