New rental homes account for just 16% of the total available

Of the total number of available homes to rent in the UK, just 16% came to the market in the last 14 days with fears that renters will struggle to find somewhere to live in some areas, a report reveals.

The findings from Ocasa also show that the average cost of renting has risen by £114 per month, or 10.8%, over the last year with tenant demand outstripping the level of homes available.

And this shortfall looks set to continue as the level of new stock entering the market remains low.

The research shows that in the last 14 days, just over 22,000 new rental properties have reached the market for the nation’s tenants – but that is just 16% of the currently listed rental properties.

‘Could be a very difficult year for tenants’

Jack Godby, Ocasa’s sales and marketing director, said: “We are entering what could be a very difficult year for tenants.

“Not only do they face the tough task of accumulating a sizable deposit in order to secure a rental property, but the rising cost of living is putting a further squeeze on their finances on a long-term basis.

“That is, of course, if they can find a property in the first place, with competition already extremely high across many areas of the market.”

He added: “Unfortunately, the government’s best efforts to improve tenant welfare simply haven’t helped as the focus has very much been centred on the financial returns available to landlords, not the tenants themselves.

“So, it’s hardly surprising that more and more landlords are choosing to exit the sector, with the level of new rental properties entering the market simply not sufficient enough to meet current demand.

“Of course, this reduction in stock will only hurt tenants further as a supply demand imbalance causes rental prices to continue to climb ever higher.”

Scarcity of newly listed rental properties

When the figures are analysed, the greatest scarcity of newly listed rental properties is found in the West Midlands, where fresh rental stock accounts for just 11.7% of the total available rental properties.

In both the East Midlands and Wales, newly listed rental stock accounts for just 12% of all homes available to rent.

The percentage of new rental listings entering the market also sits below the national average in Yorkshire and Humber (13%), the North East (14%), North West (14%), and South East (15%).

In fact, just the East of England (19%), London (21%) and Scotland (21%) currently sit above the national benchmark in this respect.

Tenants are facing the smallest proportion of rental stock

When analysing the data at a city level, it’s in Leeds where tenants are facing the smallest proportion of rental stock at just 6%.

In Birmingham, new rental stock currently accounts for just 8% of the total properties available, climbing to 9% in Nottingham, Liverpool, Newcastle and Sheffield.

However, tenants on the hunt in Edinburgh (28%), Glasgow (21%) and London (21%) have a far better chance of finding a fresh rental property, with newly listed stock accounting for over a fifth of total properties currently listed for let.