Renting a flat or house in the UK has never been more difficult. The market is tight, supply is limited and demand overwhelming. Demonstrated via the recent surge in demand, which currently stands at 33% above the five-year average. A sharp contrast to the 10% below-average demand seen in 2022. In addition, inherently the market’s infrastructure is broken; with poor logistics and communication only worsening the situation. Technology can play a key role to address this. Particularly in improving the intercommunications between prospective tenants and estate agents, exactly what next-generation platforms such as ours offer.
Extremely tight rental market
The UK residential rental stock remains limited, with each rental property receiving over 25 viewing requests on average. Ever increasing demand for renting has led to viewing numbers tripling from 2019, with Rightmove recording one of its busiest periods ever last year. Some reports even suggest the UK property market will be made up primarily of renters in the next 20 years.
Compounding the issue of heightened demand, is the insufficient supply of rental properties. Which (despite a slight increase in 2023) remains at 18% below the five-year average. Consequently, rental prices will continue to rise, further exacerbating the dysfunction and inaccessibility of the market. Rents are still predicted to rise in 2024, with London and the wider country projected to experience increases of around 2% and 5%, respectively. Considering the notable 10% hike last year, it is evident that the market will remain unaffordable for many.
Challenging logistics of renting a flat
The huge increase in demand has overwhelmed the market, with the sheer volume of communications difficult to manage by both tenant and estate agents. Part of the aforementioned issue is that, traditionally the only two ways of connecting with an agent would be either to make a call or send an email. When, in fact, 72% of consumers prefer texting over calls.
Millennials (aged 20 to 40) are the core of the rental industry. In their social lives, they rely on platforms such as WhatsApp, Tinder and Bumble, known for their quick and personalised communication methods. While in their professional lives, they rely on LinkedIn, which also provides instantan communication.
Next-generation solutions
PropTech is sweeping through every other part of the rental market, evolving what has previously been a complex and heavily administrative industry; introducing automation and streamlining. With businesses such as RentProfile and Fixflo combating issues of onboarding and maintenance, and others like DemandLogic reducing energy costs, it is time such innovations were implemented to improve the communications between tenants, estate agents and landlords.
A digital platform, such as krispyhouse, built to help the lettings industry, offers a quick “dating style” type of service to the property realm with its key functionalities. Instead of managing various channels separately, krispyhouse’s new app offers WhatsApp style communication via instant, direct messaging and video calls for tenants and their intermediaries on the platform, and by notifying them of newly available properties based on their specific requirements. It also offers letting agents access to a fully integrated CRM system, instant communication, a prospecting tool and unlimited advertising.
Approaches such as these streamline otherwise painstaking communications for tenants, estate agents and landlords. Addressing logistical problems that previously bedevilled the rental market to improve the experience for all.
Cost is also an issue
Given that rent increases are expected in the coming year and the ongoing cost of living crisis, the value of such transformative technologies are key. krispyhouse distinguishes itself from competitors, where typical monthly fee charges can be prohibitive for smaller estate agencies. With its totally free to download app, krispyhouse plans to introduce a more cost-effective option, which will be particularly helpful for independent agents. In keeping such services within a reasonable and affordable budget, the product is accessible to as many tenants, agents and landlords as possible. In turn, helping krispyhouse have a larger impact on market efficiency.
Rental market in 2024 and beyond
As we enter 2024, the rental sector needs to be modernised to keep pace with trends driving other markets. Implementation of innovations will ensure that renting is as seamless an experience as possible. While digital platforms provide a promising avenue to alleviate pressure on the rental market, they cannot be an isolated solution. While technology does have its role in addressing supply and demand issues, key legislative changes are also necessary to address the underlying issues in a stretched housing market.
To effectively tackle the UK’s housing crisis, we will need a combination of both the efficiencies that technology unlocks and a diversified approach to implementing the housing solutions that will make it easier for all to have a home.
