Increasing tenant demand sparks higher rental prices
Research shows that there has been a significant increase in demand for rental property in the UK. In June this year, almost three in ten letting agents witnessed landlords increasing rental costs in response to renewed demand from prospective tenants.
According to figures published by ARLA Propertymark, the UK’s professional body for letting agents, almost 30% of agents saw landlords increase rent in June.
The same month saw the number of prospective renters hit an all-time high. An average of 79 new tenants registered at letting agency branches, a 9% rise compared to the May average.
Alongside the rising demand for rental homes in Britain has been an increase in the amount of properties available to let coming onto the market. June saw an average 264 properties available to rent in each letting agency branch.
Further evidence of the growing demand for rental homes in the UK is the fall in the amount of time properties are empty for. Research shows that in June 2020, the average time properties were left vacant between tenancies was four weeks. This compares to an average time of five weeks in May.
Talking about the uptick of activity in the rental market, Phil Keddie, president of ARLA Propertymark, said:
“Our latest figures show that the rental market is continuing to pick up following the Covid-19 lockdown.
“The record-breaking supply of rental stock and demand from tenants for this time of year paints an optimistic picture for the summer months, indicating that the market will be more active than the usual seasonal lull.
“As the market continues to recover from the pandemic, it’s essential that everyone continues to keep up with their rent in order to sustain the market and help boost the economy during these uncertain times,” Keddie continued.
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