Rental demand in the United Kingdom has seen a significant increase, with enquiries up 23% compared to the same time last year. This increase in demand is contributing to the high cost of rents, as landlords charge more to meet the high demand. According to research from London estate agent Foxtons, rents in London have risen 22% year-on-year, with the average rent now at a record £571 per week.
This rise in demand for rental properties is partly due to some potential buyers delaying their plans in the hope that mortgage rates will decrease next year. However, the cost and availability of mortgages has begun to stabilise after a turbulent period, with indications that rates could drop further in the future.
First-time buyers are particularly affected by the increase in mortgage rates, and are also likely to find competition for suitable rental homes much fiercer than in the sales market, with limited options available. The number of smaller rental homes, such as studios and one and two-bedroom properties, has decreased by 4% compared to last year, while in the sales market, it has increased by 13%.
The high demand for rental properties is also exacerbating the limited supply of available homes. Property experts are urging landlords to add more properties to the market to meet the high demand. Until the pandemic, rents tracked closely with earnings, with rental growth averaging 2.5% per year since 2005. However, this balance has been affected by the influx of overseas students and corporates who aren’t reliant on personal earnings.
It's important for landlords to be aware of the current rental market situation and the impact it could have on their properties. They need to consider the best ways to attract tenants and retain them, this could be via offering incentives, improving the living conditions of the property and more. Landlords should also consider working with property managers or estate agents, who can help them navigate the market and find suitable tenants.
This increased competition for rental properties can put a strain on tenants and landlords alike. Landlords should also consider providing their tenants with an online payment portal, this way it would be more convenient for them, and it could also help to avoid late payments. Some landlords also offer rent discounts or other benefits to long-term tenants who pay their rent on time and take care of the property.
In conclusion, the high demand for rental properties is pushing rents even higher and making it harder for first-time buyers and others to find suitable homes. Landlords can help to ease the situation by adding more properties to the market, and taking steps to attract and retain tenants. It's important for landlords to stay informed and adapt to the changing market in order to succeed in this highly competitive rental market. Visit Let sell Property for more details.