Up to seven new tenants are competing to rent each home- and the gap between available properties and the number of tenants who can’t find a home is widening.
The number of tenants seeking a home has jumped by 15% during the three months ending June 30 compared with the same period last year, according to Countrywide, the UK’s largest letting agent.
On average, rental properties are on the market for just 13.3 days before a tenant signs up.
Family homes with three or more bedrooms are growing in popularity with tenants and now account for four in every 10 rentals – up from around a third of all rentals last year.
Countrywide suggests this is due to homeowners who can’t sell are moving and renting while letting out the home they own behind them.
John Hards, co-managing director of Countrywide Residential Lettings said: “The latest findings are an interesting insight into recent changes across the lettings landscape where both demand and supply has been affected by a subdued sales market.
“Feedback from our branches shows a lot of unsuccessful sellers have chosen to ‘let-to-move’, tempted by the prospect of a quicker return on investment by letting out their property. Interestingly, some sellers may also be looking to ‘rent-to-move’ whilst they wait for both a realistic offer on their unsuitable property and their ideal home to come along at the right price.”
Around 40% of buy to let homes in London are two-bed properties letting in 12 days – four days quicker than the same time last year.
In the West Midlands, 7.2 tenants are chasing each property up for rent, while in the North West, the number of tenants seeking to rent is 3.9 per property.
In Scotland, 75% of homes for rent have one or two bedrooms, while at the opposite end of the scale in London, 40% are two bed homes.