Tenants still have to compete fiercely for suitable housing, according to property website Rightmove, as rents continue to rise.
For every property advertised on Rightmove, letting agents and landlords receive an average of 17 enquiries from tenants.
While this figure is down from 26 in 2023, when the rental market was at its peak, it is more than double the eight enquiries per property in July 2019.
Too many renters for too few homes: Even though overall rental supply is slowly improving compared to last year, the number of available rental properties is still 20 percent below pre-pandemic levels
The number of available rental properties is 20 percent lower than pre-pandemic levels, while there are 22 percent more renters looking to move than in 2019.
Available properties are up slightly compared to last year, with 14 per cent more on the market, but Marc Von Grundherr, director of estate agents Benham and Reeves, says securing a good property remains “incredibly competitive”.
“Each property typically has dozens of people viewing it, sometimes at the same time, and it’s not unusual for properties to be rented out before they even hit the market,” he says.
How much is the average rent?
Rental prices have hit another record high, according to Rightmove.
Average advertised rents have reached £1,316 per calendar month outside London, an increase of £91 or 7 per cent compared to last year, when the average rent was £1,225.
In the capital, average rents are now £2,652 a month, up £92 or 4 per cent from £2,560 a year ago, although in percentage terms it was the region with the smallest increase, along with Wales.
Part of the reason the market is so competitive is that there are fewer homeowners. Some have left the market and sold their properties, many of which have ended up in the hands of homeowners, and others who may have become homeowners in the past have decided not to do so because of higher taxes and regulations in recent years.
Rightmove property expert Tim Bannister believes that unless landlords are given incentives, rents will continue to rise and tenants will continue to compete with dozens of others for all available properties.
“With 17 enquiries for every available rental property, the market remains unbalanced and difficult for renters,” Bannister said.
‘There is an opportunity to encourage homeowners to continue to invest in good quality homes, for example through tax changes, incentives to help with energy efficiency improvements or a general change in sentiment in Government towards working alongside homeowners.’
A recent study by Rightmove showed that around 120,000 more rental properties are needed to bring rental price growth back to more normal pre-pandemic levels of around 2 per cent, based on current demand.
How to rent the house you want
If the average tenant is competing against 17 other applicants, it’s vital to do everything you can to stand out from the rest.
Building relationships with letting agents or offering to pay more are the obvious tactics, but there are other things tenants can do to show they are an attractive prospect to a landlord.
Marc Von Grundherr, director of estate agents Benhams & Reeves, says having references and documentation ready or requesting a longer lease could convince a landlord.
Having references and documentation ready is one way to stand out from the competition, according to Marc Von Grundherr of Benham and Reeves estate agency.
“When you see a rental property and decide you want it, you’ll need to act quickly if you want to get it,” Von Grundherr said.
‘This means you should collect references and proof of income before you begin your search.
‘Also be very clear about when you can move, how much notice you need to give about your current property, etc.
“If you can impress the agent and the landlord with your preparation and reliability, you will become a preferred tenant and jump straight to the front of the queue.”
According to Von Grundherr, it is also important to demonstrate from the outset that one is prepared and has the necessary financial capacity.
“If you have your deposit and first month’s rent ready and waiting to go as soon as you see a property you like, you’ll be ten steps ahead of most renters,” he says.
‘This, combined with the aforementioned proof of reliable income and payments, will tell your new landlord that they can trust you.’
Adding a personal touch to requests can also sway the landlord in favor of the tenant.
“It’s nice to add a personal touch to your apps,” says Von Grundherr.
‘No one wants to read an essay about their life, but if you can offer a little insight into yourself, such as your interests and a little bit about why you’re moving to the area, it can help create a sense of personality that will make you stand out from the other faceless applications.’
When it comes to offering in a hot market where rents are on the rise, starting with a low offer or trying to negotiate down is also not advisable.
“There will always be a tenant willing to pay the advertised price. Instead, set a realistic budget and don’t go over it,” adds Von Grundherr.
“If an agent is having trouble finding a tenant, let them reduce the price and offer it to you. It never works the other way around.”
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Be flexible: Tenants who are willing to be more flexible about when the lease starts or who are willing to sign a longer lease or remove termination clauses may be more attractive.
Landlords may also be more supportive of a tenant who is willing to accept a longer lease than the standard one year, or who is willing to remove the buyout clause, which is typically six months.
“Many homeowners are looking for reliability and security in their properties. So if you can commit to two years instead of one, for example, that can be very attractive,” says Von Grundherr.
‘This is especially helpful if competing tenants can offer a higher rent and you can’t.
‘An owner will often opt for two years of certainty at the original asking price rather than just one year at a slightly higher price.
He adds: “By agreeing to a fixed term with no buy-out clause, you are demonstrating a greater commitment to the rental property, which will give the landlord an additional level of certainty and security and help you stand out from other applicants.”
The same could be said for tenants who are more flexible about their start date or who are willing to accept a summer end date.
‘By agreeing to end your rental contract during the summer months, between June and September, you will also make yourself more attractive as a tenant.
‘This is because the summer months are the best time for a landlord to try and re-let a property as demand is usually at its highest.’
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