New data shows the positive impact of lockdown restrictions lifting on tenant sentiment within the PRS, specifically the co-living market. The effect of lockdown restrictions lifting over the past 3 months on the co-living sector have been marked by new data from one of London’s largest co-living operators – Built Asset Management (BAM). Data showed that lettings within shared properties increased by 36% in the period of May-July this year – the months where the largest easings of Covid-19 restrictions have been witnessed.
August has also been the first month where pricing within the co-living market has returned to pre-pandemic levels since the impact of Covid-19 was first experienced in March 2020 according to BAM’s data; the steadying of the economy and increase in confidence amongst tenants resulting in a balance of supply and demand, not witnessed since Feb 2020.
In March 2021– which saw lockdown restrictions first easing in England following the complete lockdown measures of January and February – witnessed a 78% increase in lets agreed when compared to the previous two months. Despite the fact that the PRS had not been forced to close during the lockdown of January and February, confidence amongst tenants was incredibly low, with the promise of restrictions easing on 12 April 12 having a direct and marked boost on confidence throughout the month of March.
All data released by Built Asset Management relates to lettings agreed within the co-living sector; private rooms within furnished, shared properties, rented to young professionals across London. The data also shows that co-living lettings across London have steadily increased month-on-month in line with restrictions easing post 12 April:
- May 2021- 7% increase (on month prior)
- June – 14% increase
- July- 15% increase
“It’s clear from the data that the impact of restrictions easing has been enormous when it comes to tenant confidence and market buoyancy within the PRS. Our lettings data shows a marked and incredibly direct correlation between the lifting of restrictions on daily life and the number of lettings transacted.”
“Despite the winter lockdown measures not legislating the closure of the PRS, confidence amongst tenants was understandably incredibly low, particularly in London which witnessed an exodus of young professionals as offices remained closed. When the roadmap out of lockdown was then published, with late March/April seeing the first major signs of normal life returning, reaction amongst tenants was immediate and marked; resulting in the enormous 78% increase in agreed lets that we saw in March.
“From there, it’s been a positive, albeit steady, rise in lettings as more and more restrictions have been lifted. The data tells us that young professionals have regained the confidence to move into new shared properties, and to return to city life, as increasing numbers of offices and social establishments have re-opened their doors.
“These figures help to highlight the profound impact that lockdown measures have on societies and economies, even within industries which are not mandated to close during these periods.”Alex Gibbs, Co-Founder and Director, Built Asset Management