Every month, more than 100 tenants register with each rental brokerage, ten times as many as there are for rent
- In March, 106 prospective tenants registered with each real estate agency
- An average of 10 tenants registered per available rental home
- In total, 58% of rental agents reported that rents have increased monthly
On average, more than 100 tenants register per rental office, ten times as many as there are available homes, according to new figures.
The number of registrations per branch was 106 in March, according to the trade organization Propertymark, compared to only 64 potential tenants who registered in December.
However, the low point at that time of year is a seasonal trend in the rental and sales markets, as people prefer not to move around Christmas. The March figure was higher than the 95 prospective tenants who applied per rental office in the same month last year.
While the figures should be seen in the context of the scenario in which prospective tenants will register with multiple letting agents, they also reflect the high pressure on the rental market at the moment.
On average, more than 100 tenants register with each rental office location when there is a shortage of homes
Graphic shows number of registered new applicants per rental agency location
The December figure is down from levels of 140 and above during the summer of last year.
Propertymark said there were an average of 10 properties for rent per letting agent location in March.
The level has remained in a range of 8 to 12 for most of the past year.
Propertymark continues that this translated into an average of 10 prospective tenants registering per available home in March.
Competition between tenants: An average of 10 tenants registered for each available rental property
Graphic shows the number of properties available for rent per rental agency location
Graphic shows the number of new candidate tenants that have applied per available property to let
Meanwhile, a total of 58 percent of rental agents reported that rents increased monthly on average.
Propertymark suggested that ‘rental pressure seems to be building up again’.
Nathan Emerson, of Propertymark, said: ‘The problem of undersupply remains in the rental market and translates to an average of 10 potential renters signing up per available home. It is this imbalance that has caused rents to rise.
The UK government urgently needs to look at boosting investment, including for build-to-rent, as the private rented sector could play a vital role in solving the country’s housing crisis. An increase in the supply of housing is the only sustainable solution to the unaffordability of the rental market.’
Graphic shows member affiliates reporting month-over-month rent changes
It’s because separate research suggested renters pay an average price of £683 a month to rent just one room, with Londoners typically paying the most at £952 a month.
Figures from the website SpareRoom show that room rents have risen by 10 percent or more in all regions in Britain.
And the latest figures from the Office for National Statistics showed rents increased by 4.9 percent in the 12 months to March 2023, compared to 4.8 percent in the 12 months to February 2023.
Annual private rents rose by 4.6 per cent in England, 4.4 per cent in Wales and 5.1 per cent in Scotland in the 12 months to March 2023.
Carl Howard, of Andrews estate agents, said: ‘Tenants need deeper pockets and sharper elbows as demand continues to outpace the availability of homes to let.
“Another record increase in annual rent growth reflects the frenzied market, which shows no sign of stopping as the number of buy-to-let landlords declines.”