Back to news

Tenant Demand Far Exceeding Supply Nationally

June 20, 2014 | Landlord News  

Share this article  

According to a recent rental index, rents in England and Wales increased 11% annually as a result of overall tenant demand increasing by 14%, while the supply actually decreased by 7% over the same period. In London, tenant demand is a whopping 11 times the rate of supply.

London, as ever, is off in a world of its own, with new agreed tenancies up 34% annually, with just a 3% increase in supply. However, the rest of England and Wales has seen a 20% in new agreed tenancies, pushing the average monthly rent rate up to £784.

 safe_as_houses_400

While competition between tenants for rental property heats up, landlord confidence is surging. According to the latest Paragon Mortgages survey, a quarter (25%) of landlords intend to purchase futher rental property in the next 12 months. 68% of landlords said the the strength of tenant demand in their local area was an important factor in their decision to invest.

It is telling that the ratio of tenant viewings to agreed tenancies to fallen from 8.3/1 in May 2013 to 7.6/1 in May 2014, demonstrating that tenants have recognised the need to act fast in the lettings market.

Back to news

You may also be interested in…

Leeds Market Update: September 2020

Landlord News

Sales

11/09/2020

Leeds Market Update: September 2020

Read more  
Breaking News: Stamp Duty Holiday Announced

Landlord News

Sales

08/07/2020

Breaking News: Stamp Duty Holiday Announced

Read more  
New Electrical Safety Standards In The PRS – Important Information For Landlords

Landlord News

01/06/2020

New Electrical Safety Standards In The PRS – Important Information For Landlords

Read more