According to the latest Countrywide Monthly Lettings Index published for August 2014, rental demand has continued to grow with now five tenants chasing each rental property.
The main points highlighted in the report are:
– UK rental growth up 5.1%, the fastest rate in 2 years
– 15% of lets agreed at above asking price, highest level in 13 month
– Five tenants chase each rental property
According to Countrywide, demand for rental accommodation across Britain has grown over the past 12 months on the back of a housing market which is beginning to show signs of cooling.
There are now five tenants chasing each rental property, up from 4.2 tenants in August 2013, according to Countrywide’s Residential Lettings, which claims to be the UK’s largest lettings agency.
The increased demand is being reflected in rental values: 15% of properties let for more than advertised in August, a figure which rises to 19% in London amid greater tenant competition, the highest level for 13 months.
In August, landlords achieved an average of 99.6% of the asking rent.
Despite the increase in demand over the past three months, these figures remain well below 2012 levels.
The upturn in the sales market in the summer of 2013, alongside the introduction of both parts of the
Help to Buy scheme, transferred some of the demand out of the rental market.
During the first half of 2013, landlords had to be increasingly flexible when negotiating rents with tenants. Between July and September 2013, even in the context of continued rental growth, the proportion of deals agreed in excess of the asking price fell from 23% to 13%.
— LandlordZONE (@LandlordZONE) September 22, 2014