12th
Sep 2014
The latest report from a lettings agency claims that on average seven tenants are fighting over every new rental property becoming available.
It is well known that there are not enough "homes" available in Britain and those that do come on to the market, are far too expensive for a large percentage of the general public.
The report states that in the United Kingdom over twelve months (July 2013-July 2014) that the demand for rental properties increased by 18%, this was countered by supply falling by 19% in the same period.
The capital's supply of rental properties fell by 3% in sharp contrast to London's demand, rising by over half and this was just in July of this year.
Of course supply and demand dictates market price and in line rents are spiraling upwards. Outside of the capital tenants on average are paying £697 pcm, according to the report this is an increase of £7 year on year, meanwhile rents in London increased 6%.
The market is expecting to see mass purchases when the new pension rules come into force in April 2015, with an ageing population there will be more new landlords entering into the sector to take advantage of the change in pensions access.
The report claims that demand for buy-to-let mortgages has increased by 20% year on year.
The firm's Head of Lettings, Stephen Nation, said: "The rental market across the UK is increasingly competitive with demand rising at the same rate at which supply is dropping [while] activity in London’s rental market is even more abuzz."
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