New research from Zero Deposit, a tenancy deposit alternative provider, reveals that rental market turnover is as low as 10% in some UK postcodes, highlighting challenges for letting agents and landlords in these areas.
Addressing Low Tenant Demand
Zero Deposit’s analysis indicates that while 78% of the UK’s rental market stock is currently let, certain postcodes are experiencing significantly lower tenant demand. Leeds, in particular, has three of the postcodes with the lowest rental turnover: LS3 at 10%, and LS4 and LS6 both at 11%. Other areas facing similar challenges include Nottingham (NG1), Gwynedd (LL57), Plymouth (PL6), West Lindsey (LN2), Rhondda Cynon Taf (CF37), and Warwick (CV31), with turnover rates between 15% and 20%.
Challenges for Letting Agents
This disparity means that while some letting agents enjoy tenant waiting lists and quick turnovers, others struggle to find suitable tenants for their properties. Sam Reynolds, CEO of Zero Deposit, commented: “For the large part, rental properties are in high demand, but as with all aspects of the property market, this metric can differ drastically from one postcode to the next. Tenants are able to be more selective and it’s unsurprising there are growing instances of late stage drop outs where a superior property becomes available.”
Solutions and Tools for Letting Agents
To address these challenges, Reynolds suggests that offering alternatives like Zero Deposit can make properties more attractive to potential tenants. “We’ve found that 79% of tenants opt for Zero Deposit versus a cash deposit when given the chance and so the ability to offer such an option is just one tool in the arsenal of letting agents when it comes to providing access to the whole market for their landlords. The upfront cost to tenants starts at just £7.50 plus setup fee, so significantly more attractive than other options.”
This approach not only lowers the initial barrier to renting, potentially increasing demand, but also streamlines the end-of-tenancy process, allowing agents to quickly re-list properties and secure new tenants.
