Property news: Rental market at its most competitive
A lack of rental homes on the market, combined with huge demand, has seen monthly rents increase by up to 14% compared with last year, reports Rightmove.
1,300 landlords took part in Rightmove’s recent research. The study found that there were more than three times the number of prospective tenants as rental properties on the market.
Several factors are contributing to this trend. Demand has increased significantly since the end of the lockdown, with many people delaying moving previously. Additionally, tenants are staying longer in their rented homes, meaning less properties are available.
The average length of a tenancy is now over two years with rents significantly increasing, both in the capital and outside of London. Rightmove analysis also shows a jump in enquiries for rental properties with all bills included. Homes with balconies or communal gardens, and properties allowing pets are requiring zero deposits, remain popular features.
A lack of rental homes on the market, combined with huge demand, has seen monthly rents increase by up to 14% compared with last year, reports Rightmove.
1,300 landlords took part in Rightmove’s recent research. The study found that there were more than three times the number of prospective tenants as rental properties on the market.
Several factors are contributing to this trend. Demand has increased significantly since the end of the lockdown, with many people delaying moving previously. Additionally, tenants are staying longer in their rented homes, meaning less properties are available.
The average length of a tenancy is now over two years with rents significantly increasing, both in the capital and outside of London. Rightmove analysis also shows a jump in enquiries for rental properties with all bills included. Homes with balconies or communal gardens, and properties allowing pets are requiring zero deposits, remain popular features.
Key findings in numbers
- Average London rents have risen by 14%, up to £2,200 per calendar month
- 11% annual rise outside of the capital – the fastest rate recorded by Rightmove – up to £1,100 per calendar month
- Triple the number of prospective tenants than available properties
- 35% increase in requests for rental properties with utility bills included, understandable at a time of sharp rises in living costs
Rightmove also points out that many landlords understand the affordability challenges of rising rents and bills. Their study shows that the majority are charging their tenants the same as a year ago, clearly valuing their relationships with good tenants.
A shortage in stock and high demand is a similar story for property sales, as reported in the last edition of Gateway Today. We’ll continue to keep you updated on property news.
