Competition among renters looking for a new home to rent remains rife, according to new data.
Figures from trade body Propertymark suggest new tenant registrations strengthened in June. An average of 118 tenants signed up at each agency branch, compared to 113 the previous month.
This figure is 27% higher than in June 2022, when there was an average of 93 registered tenants per branch.
Rent battle: An increase in the number of renters looking for a house is causing a supply and demand problem
At the same time, the number of properties available to rent per Propertymark branch member remained at nine, representing a 19 percent drop from the prior year.
With demand up and inventory levels down, it’s no surprise that the supply-demand mismatch continued to grow in June with an average of 13 new registered tenants per available property for the month, according to Propertymark.
It equates to a 57 percent increase in the demand-supply mismatch compared to June of last year.
The number of new tenants registered by member branch during the last year is revealed
Propertymark revealed data showing the average properties available to rent per member branch
This supply-demand mismatch has translated into higher rents, with 62 percent of agents saying rents increased on average monthly at their branch during June.
The average rent in Britain rose 10 per cent over the last 12 months, hitting a record £1,213 per month in May, according to HomeLet.
The homeowners insurance provider revealed that the London rental market in particular shows no signs of slowing down.
There have only been a handful of times where the monthly average has been recorded above £2,000 per month, with the May average of £2,039 being the highest ever recorded.
The average rent in Britain rose 10 per cent over the past 12 months, hitting a record £1,213 per month in May.
Harriet Scanlan, of Richmond estate agency Antony Roberts, said: ‘Demand for rental properties continues to substantially outpace supply.
‘Some tenants are getting desperate because of the lack of stock. For example, we received an offer from a family who had been looking for six weeks and were running out of time before their current lease expired.
‘They are restricted to the area as they have young children at the local school.
Some tenants are getting desperate because of the lack of stock. For example, we received an offer from a family who had been looking for six weeks and were running out of time before their current lease expired.
Harriet Scanlan – Antony Roberts Estate Agency
“There was a lot of competition for the property, so both the owner and I were offered a bond of £1,000 each, which of course was declined and we went on to the ‘best and final’ offers.
“Every time we launch a new property, we are flooded with inquiries and receive multiple offers above the asking price, which drives up rents.”
Propertymark’s Nathan Emerson said: ‘This worrying supply-demand mismatch continues to put pressure on rents.
“Governments must stop playing to the edges of the problem and seek to properly incentivize the provision of desperately needed housing in the private rental sector.”
Propertymark also reported its sales data, with the average number of new buyers registered per member branch falling to 69 in June, down from 86 in May.
Demand was 5 percent lower in June compared to the same month last year.
The average number of visits per property continued to pull back slightly from its recent peak in April.
In June, the average visits per available property was 2.6 compared to 3.3 in April.
The average number of new registered buyers per participating branch decreased slightly to 69 in June
Meanwhile, the supply of new homes for sale per member branch continued to decline in June, now at eight per member branch.
Propertymark said that while a summer break is generally expected, the average number of agreed sales per member branch held at seven in June, the same figure as the previous month.
Emerson added that the data was encouraging despite disappointing broader economic news for the country.
He said: ‘It is clear that a core part of the country is still looking to move and is not deterred by current conditions.
“And of course, those who come to the market with a home to sell are often looking to buy as well, which keeps the wheels of the market turning for everyone.”