Demand for rental property has grown by 57 per cent since 2018 when Propertymark records began, the trade body has revealed. 

At the same time, there was no growth in the size of the private rented sector to house these tenants.

The group says 2022 saw peak numbers of prospective tenants registering in Propertymark’s data with a new monthly record set in September at 147 new prospective tenants per member branch. 

The percentage of member agents seeing rent rises in their areas has risen dramatically over the last five years as pressure on the sector to house the UK public has risen with no change in the number of homes provided. 

Letting agents’ greatest concern for landlords in the year ahead was the impact of incoming legislation (80 per cent). This was followed by diminishing yields (44 per cent) and issues with damp, condensation, and mould (35 per cent). 

But agents also saw the potential for increasing yields as being a great opportunity for landlords in 2023 (57 per cent). 

This can be explained by contrasting concern for landlords with mortgages and those without. Landlords with buy-to-let financing and fixed-terms coming to an end this year will see their costs increase significantly due to rising interest rates. 

Those without mortgages on their let property should see yields rise as house prices drop and rents rise. 

The next major opportunity in the year ahead will be a chance for further portfolio investment as the price of property comes down (31 per cent).