Johette Smuts, head of data analytics at PayProp, told real estate portal Property Professional the worst appears to be over for now, with the latest PayProp Rental Index showing a return to growth in the rental properties market of 0,7% and 0,8% in May and June, after dipping below zero in April 2021. “Tenants who are spending more time at home are in search of bigger properties and are splitting the costs with family or friends to improve their quality of living.” In many cases, tenants can live in homes that they may not be able to finance through a home loan.”Īccording to Smee, a notable trend in renting is that of house sharing. “Tenants get to enjoy the perks of a home without being tied into a long term commitment and unforeseen costs. Some are also prioritising quality of life, flexibility, and cash flow.
Homeownership is still out of reach for many, largely due to unforeseen costs, potential repo rate increases, high levies, and escalating rates and tariffs. While the past 18 months saw a notable buyers’ market coming to the fore, the rental properties market is starting to gain momentum, says Grant Smee, property entrepreneur and managing director of Only Realty Group.
The residential property sector tends to ebb and flow. Excess supply and cash-strapped tenants have placed the rental properties sector under significant pressure for the last 18 months, but industry experts are cautiously optimistic that this is about to change
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