Areas of the country which appear to have had a surplus of rental stock in the past is now reporting a shortage – with rents rising as a result.
Even on the Channel Island of Guernsey there appears to be an unprecedented shortage.
The local Bailiwick Express newspaper and website reports that only three local market rental properties are available to let, starting at £1,400 per month; this is on the section of the island’s housing market reserved for locals, and not for non-locals or second homes.
The manager of one agency tells the service: “You’d find it hard to even get a bedsit for £800 at the moment … Because there’s a shortage of rental properties the prices have gone up. Whereas a couple could split costs, a single person would find it more difficult.”
And another agent is quoted as saying: “It’s a real tough time, there’s just not the supply of properties for the demand of tenants. Each story comes with desperation and we’re always going to disappoint someone, it’s so hard to choose the right tenant at the moment.”
Across much of mainland Britain it appears the same story.
The most recent market snapshot from ARLA Propertymark reports an average of 82 tenants registered per agency branch, and that was back in April. Regionally, Wales had the highest number of new tenants registered per branch with an average of 133.
A jump to 67 per cent of agents said they saw landlords increasing rent compared to 60 per cent the previous month. Year-on-year this figure has more than doubled since April 2019.
ARLA Propertymark policy chief Mark Hayward says: “We continue to see unprecedented demand from tenants with a record-breaking number of new prospective tenants registered per branch for the month of April, showcasing the booming rental market.
“We will be keeping a close eye on the sector in the coming months as the current strength of the sales market may be off-putting to private rental investors and talk of a potential impending taxation on property will be a concern for all types of landlords, but ultimately it is positive to see rent continuing to flow this month.”
This post has originally been featured in Letting Agent Today.