'Unprecedented' levels of activity in rental business, says Sequence

New tenancies agreed are up by 18% on a year ago at Sequence, part of the Connells group.

The firm said that in July the number of new tenancies agreed was up by 6% on the previous month – and in London up by 13%.

It also reports that the national average rent is now £751, and in London £1,437.

Stephen Nation, head of lettings, said: “Levels of activity and growth across the rental market are unprecedented and showing no signs of slowing down.

“New rental contracts agreed have increased to record-breaking levels.

“Demand for new rental properties is still rising faster than supply, with new tenant applications up 4% in a month, compared with a 3% rise in the number of new properties available for rent. It is this disparity between demand and supply which has pushed rents up by 2%.”

However, while national monthly rents have grown 6% year-on-year, in London they have risen by less at 5%.

Nation said that the ratio between the supply of properties and demand from tenants has reached a plateau, with new applicants up by 5% but the number of new rental properties up by 8%.

Sequence has drawn its data from its 290 branch network, which includes the Allen & Harris, Barnard Marcus and William H Brown brands.