Tenants are searching further afield for a home amid rental shortage

Tenants are searching further afield for a home amid rental shortage

0:02 AM, 7th August 2024, About 3 months ago 1

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The UK’s rental market remains intensely competitive, with tenants facing a perfect storm of surging demand, dwindling supply and escalating rents, Rightmove says.

Its research reveals a stark picture of a private rented sector (PRS) that’s out of kilter with tenant demand – and more landlord investment is need.

While the number of enquiries per rental property has eased from last year’s peak of 26 to 17, this is still more than double the pre-pandemic level of 2019.

Also, tenants are expanding their search radius by more than 60% compared to five years ago, exploring areas exceeding 39 square miles (100 kms) to find a suitable home.

’17 enquiries for every available rental property’

The platform’s property expert, Tim Bannister, said: “With 17 enquiries for every available rental property, the market remains out of balance and difficult for tenants.

“We need landlord investment to increase stock and help achieve a healthier supply and demand balance in the market.”

He adds: “There is an opportunity to encourage landlords to continue to invest in good quality homes, for example, through tax changes, incentives to help with energy-efficient upgrades or a general sentiment change in government towards working alongside and with landlords.

“Landlords have previously told us that the government’s perception of landlords is one of their main concerns about the sector.

“Support for both tenants and landlords will be key to achieving long-term stability in the rental market.”

Shortage of rental properties

Rightmove says there’s a combination of factors that is driving the trend to search further afield, including a shortage of rental properties and rising rents.

Also, the pandemic-induced shift towards more rural or coastal living has continued in the PRS, even as the sales market reverts to pre-pandemic patterns.

London epitomises this exodus, with more than a third of renters seeking homes outside the capital.

Leeds and Glasgow also witness significant outward migration of renters.

Despite a modest rise in the number of available properties compared to last year, the market remains undersupplied by 20% relative to 2019 levels.

Rightmove estimates a shortfall of 120,000 rental homes to restore pre-pandemic equilibrium.


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11:23 AM, 7th August 2024, About 3 months ago

Pedants corner here. 39 square miles is an area of 101 square kilometres is what the article means to say. However, 39 square miles sounds big but equates to a square of 6.25 miles on a side. The furthest distance you can travel in such a square going from one corner to corner is about 8.8 miles but of course most journeys within the area will be less than this.
What the article is alluding to is something we all know too well, that the best rental locations near industry, shops, good schools and even hospitals are commanding the best prices and people are having to move away to less desirable areas if they can’t afford it. Renters are not alone, same thing happens with people buying houses as well. The critical thing with property is “Location, Location Location”.

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