(qlmbusinessnews.com Thurs, 5th Oct, 2023) London, UK —
UK Rental Market: Fierce Competition as Demand Surges, Prices Soar
The UK rental market is experiencing unprecedented demand, with the average number of prospective tenants vying for each property surging from 20 to 25 in just five months, according to data from property portal Rightmove.
In a stark contrast to 2019 when only six inquiries per property were common, this spring, that figure had already risen to 20, and now, the rental frenzy has reached new heights with 25 applicants per property. Property experts are calling this a “crazy” mismatch between supply and demand.
The soaring demand for rental properties has been met with a substantial rise in average advertised rents. Rightmove reports that the average advertised rent for new rentals outside of London has reached a record high of £1,278 per month, marking a 10% increase from the same period last year. In London, the average advertised rent for new rentals is now £2,627 per month, a staggering 12.1% higher than a year ago.
Lettings manager Ria Laitmer at Clarkes agents in Bournemouth expressed the intensity of the situation, stating, “The gap between high demand and a severe shortage of rental stock at the moment is just crazy. We're receiving mounting enquiries for each property to rent from would-be tenants, with queues of tenants arriving at open-house viewings, and the majority being left disappointed as there are simply not enough properties on the market to meet the demand.”
Renters are resorting to extreme measures to secure rental properties. Peter Clucas, who is semi-retired, had to offer a full year's rent upfront to stand out from the crowd. Louisa, a Manchester resident, has witnessed her rent increase every year for subpar housing conditions and recently received a no-fault eviction notice.
The surge in demand for rental properties can be attributed to several factors, including returning students, high mortgage rates deterring home ownership, and regulatory changes causing some landlords to exit the market.
While there are signs of a slight increase in the number of available rental properties, experts believe it will take a considerable amount of time to rectify the supply-demand imbalance in the rental market. The National Residential Landlords Association highlighted that landlords are facing declining profits, and the government's plan to ban no-fault evictions has been slow to progress.
Housing Minister Rachel Maclean expressed the government's commitment to renter-friendly legislation during the Conservative Party conference, aiming for a “fairer deal for renters” as the rental market landscape continues to evolve.
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