Demand for rental properties in the UK continues to rocket with news that five tenants are now chasing each rental property, according to a survey.
The findings have been revealed in the Countrywide Monthly Lettings Index covering August which highlights that rents have grown by the fastest rate in two years by 5.1%.
The index also reveals that demand is such that 15% of all agreed lettings are now above the asking price - the highest such level for 13 months.
Cooling housing market fuels rent sector
One of the biggest drivers for the demand in a rental property is the cooling of the housing market which includes people who did not qualify for the Government's Help to Buy scheme.
In August 2013, 4.2 tenants were chasing each property which has now risen to five people and in August this year nearly every landlord achieved their rental asking price.
Countrywide's commercial director, Nick Dunning, said: “The cooling of the sales market in the last two months has seen an upward pressure on rents which is driven by a rise in tenant demand with fewer tenants leaving the market.
“Increasing numbers of landlords have also been able to re-let properties at a higher rate that tenants are willing to meet and, in some cases, surpass the rising asking prices.”
Countrywide says tenant demand will continue to grow
Mr Dunning predicted that the rise in rental demand will continue to increase until more new homes are provided.
He pointed to the private rental sector growing by 50% between 2007 and 2013 and the fact it will continue further.
The survey by Countrywide also reveals that tenants are willing to sign longer tenancies in record numbers with many choosing to stay in their property by renewing their tenancy agreement.
The average UK tenancy has now risen to an average of just over 16 months, with the exception of tenants in central London.
78% of tenants say their homes shouldn't be energy inefficient
Meanwhile, a survey has revealed that 78% of tenants believe that landlords should not rent out homes that are energy inefficient.
The research by the Energy Saving Trust highlighted that more than half (51%) of tenants in rental homes said their properties were cold during winter months.
A greater proportion of tenants expressed concerns about their fuel bills compared to homeowners with 80% admitting that the cost of energy was a worry and 11% of tenants said landlords should carry out improvements without raising their rent as a result.
The Trust’s chief executive, Philip Sellwood, said: “The reality is that landlords may have to contribute to the cost of (property) upgrades.”
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