Winter Is Coming

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Winter Is Coming. Many readers will be familiar with the famous line from the cult series Game of Thrones which has some resemblance to the lettings market.

For those whom may not watch the series (yet), the Lords of the Northern lands use this phrase to remind them to be prepared for the hardships of winter not only on their lands but also the dangers from friends and foes.

Luckily, the lettings market isn’t so dramatic, especially if you plan well (being the well informed landlords/agents that you are!)

So what’s up with the lettings market in Winter?

Well lettings market has very consistent seasonal trends which can really affect those who are ill-prepared. As you may expect peak season for lettings (i.e. finding a new tenant) is the months of July, August, September. During these months you should expect a constant flow of enquiries and multiple viewings every day for properties. All agents are running around crazy due the the volume of viewings and the movement in the market.

We have found the main reasons for this upheaval of viewings is primarily due to the 3 main types:

  1. The Fresh Blood - University graduates moving into cities to start graduate jobs and start their careers

  2. The Summer Raiders - those wanting to have simply “more”. Usually having secured a new position, promotion, new partner or just want a change. Their increase in earnings and maturity of taste have turned their desires to better properties/areas.

  3. The End of Timers - these guys move because their 6 month or 12 month contract is up. Lots of agents/landlords plan for contracts to end in the heat of summer which inevitably creates movers at the end of their contracts. The sun is shining, the days are long and so its the best time to find a new place to reside for another year or two.

Of course this is just a snap shot but it is the main of what we see in our chosen client market (young professionals working in inner zones of London).

Going back to “Winter Is Coming”. August is the peak time for enquiries for new properties. In November and December there is a huge slow down in the market. Enquiries for viewings reduce by approximately 30% in November when compared to the peak of August. December enquiries shoot down to 50% when compared to August. That HALF the interest!

Footfall is crucial in lettings as its all a numbers game. In the main, all agents and landlords should plan to have no properties coming available in November and December. This is done by two simple ways

  1. Being proactive with contract renewals (not allowing just to go on periodic tenancies)

  2. Adjusting tenancy term so that the end of the term lands the property available in the peak of the wave. No harm in giving an 8 month contract in January and then renewing for a year in August.

These two steps is the best way to protect and ensure consistent cash flow.

For those of you who have properties coming available in these Winter months, you need to fill your properties as soon as possible. Especially before the frost of December hits.

Luckily enough, you have a small army of dedicated lettings agents at your disposal - feel free to get in touch.