New tenancies agreed are up 22% on a year ago across the country, and up 20% in London.
Growth in tenancy demand is up 17% across the country, but in London it is up by just 5%.
According to property chain Sequence, reporting on June, new supply is now outpacing demand, with a 29% annual rise in the numbers of new properties available to rent. In London, availability has risen 13%.
Sequence, which has 20,500 rental properties on its books, says that both national and London average rents are flat at £706 per month and £1,374 respectively, mainly due to increasing supply meeting the high demand
Stephen Nation, head of lettings at Sequence, said: “The rental market across the country continues to be a hive of activity.
“Landlords continue to flock to the market keen to take advantage of growing demand, up 17% annually, and attractive mortgage products.
“The dual increase in supply (up 29%) and demand is one reason why rents are remaining stable, though landlords are also pricing their properties keenly to secure tenants over the summer period.
“In London demand (up 5%) continued to marginally outstrip supply (1%) in June, though the ratio of new tenants to new properties is converging with the rest of the UK and as a result prices remain flat.
“Landlords, buoyed by low interest rates and attractive mortgage products, are all too aware of the increasing competition so they are looking to attract reliable long-term tenants, and are pricing their properties to do so.”
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Comments
If the population numbers are stable and the number of properties to live in is more or less constant then the only thing that is happening is that people are giving up ownership and becoming tenants and the houses that they leave behind are becoming available to let one way or another. It is difficult to see how any great imbalance in supply and demand is going to happen unless people decide to live in hedgerows or caravans or something that is not a typical residence. I suppose going back to live with Ma. & Pa. could affect the balance if enough people do that.
“Landlords continue to flock to the market keen to take advantage of growing demand, up 17% annually, and attractive mortgage products; I think he means properties that they can't sell continue to flock to the rental market. These properties are not long term rental properties, more likely distressed owners who can't sell.