High demand forces rental prices to increase
Low supply and soaring demand fuel high prices for both the sales market and the private rental sector – a truth that makes itself felt by landlords and tenants.
NAEA Propertymark – a membership body for estate agents – has recently shared data collected by its members to provide a snapshot of the current situation. Interestingly, almost 80% of agencies say rental prices have increased monthly since May. This reflects a wider trend of rising rents over the last 12 months.
While more properties have appeared on the market since February, agencies are seeing applications from new tenants reach an average of 113 per month – compared to 78 applicants in February. *
With demand easily matching supply, prices are steadily rising, providing a good opportunity for landlords to enter the market or increase their portfolios. This, in turn, could help balance out the supply issue over time – a win for tenants, too.
We know some potential landlords are worried about the recently published Renters’ Reform White Paper. However, the proposals are still up for debate before any new legislation is introduced. The Government is also planning to strengthen ‘Section 8’ grounds for possession and improve rights for responsible landlords.
If you’re hoping to capitalise on the lively private rental market, book a lettings valuation today – you may be pleasantly surprised by what you could achieve.
Property Reporter *