We have certainly seen the most competitive rental market in recent history especially over the past eight months. According to the ONS ( Office of National Statistics ) data published in September - private rental prices increased by an average of 5.5% per annum across the UK in the 12 months to August 2023. Rightmove reported that asking rents in London grew for the seventh consecutive quarter, with London rents now 28% higher or another £550 per month than at this time in 2019.
Demand from tenants is being driven by a number of factors; including the high interest rates which has seen some house hunters postponing their moving plans, the increase in the cost of living which has affected the UK economy and the proposed new government legislation on landlords. Many of new rules effecting smaller landlords causing them to sell up, these factors have contiued to add to the short supply of rental properties available.
High demand and short supply of good rental properties has also contributed to the inflated market as more and more people are gradually going back into the office environment and move nearer their place of work. The return of international students into the capital has also added to increase in demand.
Despite rising prices, tenants are chasing many properties with block viewings a norm. Estate agents are faced with long queues of prospective tenants wanting to view potential properties many offering the deposit before the viewing starts. At the moment tenants are having to act quickly and respond to arrange viewings and make offers. Most often than not many tenants are resigned to the fact they maybe be paying more for their rent than they were previously.
The other factor is the general lack of supply of rental stock especially in London, as well as landlords selling many tenants with more and more tenants opting to renew their existing tenancies so to avoid going back into the open market. Rightmove has seen (57%) of landlords say tenants choose to stay in their properties for longer than 24 months . All these factors have lead to rents to rise and in the final quarter of 2023, September and October is no exception.
The late summer months has normally been busiest time of the year for the rental market and with the current market conditions for landlords facing high mortgage rents and costs, the rental market has remained extremely competitive for tenants. However the welcome news last week to all home owners that the interest rates this month didn't rise last month has helped steady the market and and was welcomed across the property industry. The cost of living issues still very much part of life, and Rightmove reported that national average asking rents outside London hit new record of £1,231 per calendar month (pcm)
The rental market is moving as such a fast pace we have seen the current average time to find a tenant a home to rent is now between 15 -17 days, its compared to at least 28 days before the pandemic, tenants reaction times, flexibility and budget are so how can you ensure you are able to get the property you want.
Competition among renters is fierce. There are on average 20 requests to view each available property - rents have risen at their fastest rate since according to the property industy such as. To get a good understanding of what is available and what you can afford search on the portals such as Zoopal, Right Move and On the Market and the local Estate agents and register your interest giving realistic dates when you want to move, giving yourself the best chance of finding a home that’s affordable and right for you.
Before beginning a new tenancy, you’ll need payslips, a job reference, passport and a reference from a previous landlord.
Build good relationships with agents in your chosen area, research and be prepared to widen your search or be flexible with your criteria. If there is a chance to view a property be prompt and flexible with your time as they likely hood of the property being offered on by another applicant is highly likely if you can't attend.
Some prospective tenants are offering to pay over the monthly rental amount to secure the property. So, to keep up with competition, it helps to be sure of your budget and calculate how much you can offer upfront.
Many estate agents are active on social media and use these platforms to further showcase their properties.