Demand pushing up rents across the UK, especially in London, new data shows
Heightened competition among tenants have led to private residential rents in the UK rising by 8% annually, according to the latest data.
UK rents have risen by 1% in the last month to £762 per month and the number of new tenancies agreed has increased by 16% month on month and 20% annually.
The Sequence report also shows that in London rents have risen 2% month on month and 4% annually to £1,427 per month.
It says that London is a hive of activity, with the number of new tenancies up 37% year on year and 15% month on month.
There are six prospective tenants now chasing every new rental property on the market in London, up from 5.1 last month and mortgage applications from landlords increased 8% month on month and 3% annually.
‘The figures this month highlight just how much the rental market is growing and proves that a strong sales market does not impinge on the strength of the rental market,’ said Stephen Nation, head of lettings for Sequence, a 300 branch network which includes Barnard Marcus, William H Brown, Fox & Sons.
He said that the annual and monthly rent increases are driven by high levels of demand across the country. ‘The number of new rental properties coming onto the market has failed to keep up with demand, remaining flat on the month, which is why we have seen a growth in rents,’ he explained.
‘London continues to outpace the rest of the UK, with the supply and demand divergences even more acute in the capital. There are now six prospective tenants chasing every new rental property, with tenant applications rising 23% in March and 31% annually. There is little doubt that this undersupply of property is creating more competition in the market and that has caused rents to rise by 2% this month,’ Nation pointed out.
He also said it is encouragingly that buy to let mortgage applications have risen by 8% on month and 3% annually, the sharpest growth across all of our mortgage products.
‘This highlights that buy to let remains the investment of choice and should result in greater volumes of rental stock in the months ahead,’ added Nation.
Article courtesy of Property Wire