Ten prospective tenants are competing for every available rental property as demand continues to outstrip supply, according to Propertymark’s latest Housing Insight report.
The average number of new prospective tenants registering with each member branch jumped to 121 during August, while agents had an average of just 12.86 properties available to rent.
At the same time, the flow of new rental properties onto agents’ books weakened, with fully managed instructions falling to an average of 2.97 per branch.
Despite the continuing imbalance between supply and demand, Propertymark’s latest Housing Insight report also shows properties are taking slightly longer to let.
VOID PERIODS RISE
The average void period between tenancies increased to almost four weeks during August and has been gradually trending upwards.
Propertymark says this could indicate that homes are taking slightly longer to secure new tenants, despite strong overall demand.
Phil Spencer (main picture), Founder of Move iQ, says: “Renters continue to face a very different experience. Competition for suitable homes remains intense, so getting finances and paperwork organised before starting a search can make the difference when an opportunity appears.
“At the same time, a gradual change in how long some properties take to let suggests that the rental market isn’t moving in quite one direction everywhere.”
Agents agreed an average of 9.92 new tenancies during the month.
Rental pricing was also relatively stable among Propertymark members, with 59% reporting rents remained broadly unchanged. A third reported increases and 6% saw rents fall.
Official data cited in the report puts annual UK rental growth at 3.8% in August.
SUPPLY PRESSURE
Nathan Emerson, Chief Executive Officer of Propertymark, says: “The rental market continues to demonstrate how acute the supply challenge remains.
“Tenant demand is still placing considerable pressure on the homes available, while landlords are making increasingly careful decisions about whether and how they participate in the market.
“With the regulatory environment continuing to evolve, maintaining a healthy supply of good-quality rental homes must remain a priority.”
The report also finds the proportion of fully managed properties experiencing rental arrears fell to 2.7% during August.
Read the full report HERE.
