In a fascinating development within Britain’s real estate market, the number of prospective tenants standing in line to view rental properties rose alarmingly from an average of 20 individuals, five months ago, to a staggering 25 now, as per data from Rightmove.
Put into perspective, the statistics in 2019 registered a mean of six phone or email inquires per rental property for viewing appointments. This number subsequently expanded to 20 by the spring of this year, before escalating further to the current figure of 25.
Estate agents have defined this surge in demand coinciding with a declining supply of rental properties as “absurdly disproportionate”.
Meanwhile, the average rent for new properties outside London has seen an unprecedented hike, touching the highest ever figure of £1,278 per month. According to real estate platform Rightmove, rental prices swelled by 10% between July and September, in comparison to the same period in the previous year.
The situation in London mirrors this trend with the average rents for new properties increasing to £2,627 per month, marking a 12.1% surge from the previous year.
Ria Laitmer, the Lettings Manager at Clarkes agents in Bournemouth, spoke of the escalating enquiries for each listed rental property, with queues of potential tenants attending open house viewings only to face disappointment due to the extreme shortage of properties on the market.
Previous data from Rightmove, commissioned by the BBC early this year, revealed the fierce competition within the sector. The demand from prospective renters has skyrocketed due the return of students post-Covid and the increasingly elusive dream of homeownership due to high mortgage rates.
Changes in mortgage costs, taxation, and other sectorial reforms have led several landlords to either sell their properties or halt the expansion of their portfolios. Although Rightmove indicated subtle indications of the number of rental homes rising once again, it underscored that it would take considerable time to rebalance the scale.
Earlier in May, the government divulged its plan to prohibit no-fault evictions across England in a bid to ensure a “fairer deal for renters”. However, groups of charities and campaigners reported underwhelming progress thus far.
During the Conservative Party conference, Housing Minister Rachel Maclean voiced the government’s pledge to change the law and expressed hope of making strides in Parliament soon. She added that the government wished to support tenants who weren’t all “negative stereotypes”.
Real estate agents suggest prospective renters to start property hunting long before their existing tenancy concludes, register with multiple agents, organise their payslips, job references, previous landlord’s reference, and stick to a calculated budget. Some agents use social media to softly launch properties prior to listing, so potential renters should remain alert of such opportunities.
