Landlords see a surge in demand as less choice pushes up rents

Landlords see a surge in demand as less choice pushes up rents

0:01 AM, 23rd May 2024, About a month ago 4

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Landlords have seen a surge in tenant demand with tenants chasing fewer properties in the private rented sector (PRS), a survey reveals.

The research by bridging broker Finbri found that 71% of landlords saw higher demand last year.

Tenant demand is outstripping supply and landlords with two-bed rental properties are on the market for 10 days less than they were pre-pandemic when the average was 25 days.

The survey of 755 landlords also found that 25% of landlords said that demand had ‘significantly’ increased.

‘Lack of rental property supply’

Finbri says: “The lack of rental property supply is a key reason for the increase in demand.

“Landlords are leaving the market, not enough rental properties are being built, and tenants are finding it increasingly difficult to move from renting to home ownership, contributing to increased demand for available properties.”

Tenant demand in London is strongest with 83% of landlords experiencing an increase.

Landlords identified increased demand

The South West closely followed London, where 82% of landlords identified increased demand.

The only regions where less than 70% of landlords experienced increased demand were Yorkshire and the Humber and Wales.

Even then, landlords in these regions experienced a 67% and 63% increase in demand, respectively.

The average UK rent

The market imbalance is leading to rising rents and the firm says that the average UK rent has climbed by 7.2% to £1,223 per month.

Finbri’s survey found that 51% of landlords will raise their rents to cover additional expenses.

Despite increasing demand, landlords are still selling up with 32% offloading at least one of their rental properties last year.


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Comments

Michael Johnson - Amzac Estates

18:45 PM, 23rd May 2024, About a month ago

I think that this type of survey that is out of date by at least 7 months isn't helping anyone. As a matter of fact here in Cardiff, Wales we have seen void periods increasing and rents dropping, admittingly only by 3-6% but defiantly not on the rise. The rising rents have defiantly plateaued here in Wales and I am going to take a guess in the rest of the country as well. This is real time information not some out of date sample from a insignificant lender in the buy to let space.

Michael Booth

8:06 AM, 24th May 2024, About a month ago

Reply to the comment left by Michael Johnson - Amzac Estates at 23/05/2024 - 18:45
Thats wales you will find it the polar opposite in England tenants clambering for property to rent even out bidding each other on rent.

Fed Up Landlord

18:33 PM, 24th May 2024, About a month ago

One bed flats in Halesowen West Midlands £500 before pandemic £750 now. That's if you can find one. Crazy. Caused by government beating up landlords forcing them out.

AnthonyJames

20:01 PM, 24th May 2024, About a month ago

And every time Angela Rayner opens her mouth, it's clear Labour are going to be worse - she favours rent controls for example The Rental Reform Bill may have been dropped due to the Election, but once Labour take power, it will return with redoubled severity. Then more and more landlords will sell up, rents will rise, Labour and all the other political parties will blame landlords, tighten the rules further, and so on and on until someone brave sees sense and realises they need to be encouraging an increase in rental supply.

Or pigs will fly and Labour will spend hundreds of billions on hundreds of thousands new houses with massively subsidised social rents.

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