A new analysis of the impact Tier 3 rules had on the lettings market in Leicester, which saw 120 days of intensified restrictions, has been completed by Goodlord.

The research by the property technology company suggests that the existing lockdown could slow the rental market in England despite house moves being permitted under the current rules.

The study found that letting market in Leicester saw a spike in activity immediately before restrictions were introduced, followed by a significant slowdown when year-on-year figures were compared.

The Leicester lettings market suffered a 22% reduction in tenancy completions when compared with the same period last year. This drop followed a rise in activity of 44% during the two weeks before the region entered Tier 3.

A sample size of 1,000 tenancies from 27 lettings agencies were assessed as part of this research.

This data provides a strong indication that the weeks ahead will be difficult for the property market, with signs that the rate of new tenancies is already starting to slow.

The data from across England showed an 8% uptick in letting activity over the fortnight leading up to the national lockdown – which came into effect on 5 November – as renters rushed to move. That surge is now dissipating, with the market slower compared to the same time last year.

The numbers indicate that most regions will see a decline in activity over the coming weeks.

Tom Mundy, COO at Goodlord, said: “Despite house moves having been permitted across England since May, this analysis shows just how impactful local lockdowns can be on the lettings market.

Leicester, which has been under additional restrictions for many months, has seen activity drop by a fifth compared to 2019.

“It’s hugely welcome that house moves can continue throughout the month ahead and we know that agents and landlords have been working extremely hard to make sure they are safe. Although the industry should expect a slowdown over the coming weeks, when the market bounces back, it bounces back strongly – as we saw earlier in summer.

“I believe the underlying resilience of the UK lettings market will see it through to the brighter horizons that 2021 looks set to bring.”