Tenant Demand for UK Rental Properties
A recent report by ARLA Propertymark – the UK’s foremost professional and regulatory body for letting agents – has found that tenant demand for UK rental properties is at a record high.
The findings, which were published in the ‘Private Rented Sector Report, January 2020’, found that more tenants than ever are seeking rental properties in a market where such types of housing is becoming ever scarcer.
The report states that in January 2020, rental stock was at its lowest level in seven months. This undersupply has also led to an increase in rents. Of ARLA Propertymark’s 9,000 professional members, 42% saw the price of rents increase.
Year on year growth
Year-on-year this rental demand has increased by 21%. The number of prospective tenants agents have registered grew by 57% between December 2019 and January 2020.
In contrast to this increased number of potential tenants, the number of rental properties managed per agents fell by 3% year-on-year, and decreased by over 7% since December 2019. The number hasn’t been this low since July 2019.
Hot spots in the UK
The areas most in demand from tenants are the North West, Yorkshire, the South East, and Wales.
ARLA Propertymark Chief Executive, David Cox says, “With demand increasing by more than half, but rental supply falling, rent costs are unsurprisingly being pushed up. Our recent research found that tenants could miss out on nearly half a million properties as more landlords exit the traditional private rented sector and turn towards short-term lets which will only serve to worsen the problem for those seeking longer term rental accommodation.
“It’s important that the Government works to make the private rented sector attractive to landlords again, rather than introducing complex legislation which ultimately squeezes the sector and leaves tenants worse off.”
Oli Banks, Managing Director at North Property Group, says “We expect the demand in rental properties to increase during 2020. We would encourage landlords to keep their buy-to-let properties in the long-term rental sector as there are great returns to be made here.
“As demand increases, so will rental yields. Our regional focus is in north of England, which is where the property market has seen some of the largest growth due to increasing tenant demand. Property investors are advised to look for long-term buy-to-let properties in these areas for secure investment growth.”
To find out more about investing in a buy-to-let property, contact North Property Group today.