Average rents in the UK remain flat on month but are 8% higher overall than this time last year.
This is a momentary reprieve for tenants but an increase is likely as the rental market looks set to mirror the homeowners market as demand for properties increases.
New tenant demand is increasing 10% on month.
New tenant applications in London rocket 18% on month
Buy to let investors are flooding the market with buy to let mortgage applications up by 25% on last year and 8% on month.
Steven Nation, Head of Lettings for Sequence, a 300 branch network comments:
"The number of new tenant applications increased by 10% on month, but the number of new properties to rent rose by just 2%; as such I would predict that rents will start to rise again if supply continues to fall short of demand"
“London’s rental market is leading the way, with the number of people registering for rental property rising by a staggering 18% on month and 26% annually. Needless to say, the number of new rental properties has not kept up, rising 7% on month and decreasing 1% annually. While this imbalance remains we will see competition for property intensify which could impact rents.
“Property continues to be the investment of choice, as buy-to-let mortgage applications rise by 8% on the month, up a quarter on last year. While historically low interest rates continue to push would-be savers into the market, the number of investors will only grow. With demand rising at exceptional levels already this year, it is vitally important that the supply of properties to rent remains strong, otherwise we might see the same affordability challenges which are occurring in the sales market.”
