Tenant Demand Reaches Record High

AFS Team·5 March 2020·4 min read
Tenant Demand Reaches Record High

Tenant Demand Reaches Record High

Letting agents say they are seeing rocketing demand for rental homes which has reached a record high, one organisation claims.

The findings from ARLA Propertymark found that in January, the average number of prospective tenants per branch was 88.

Now, letting agents say they've seen a 57% rise in the number of tenants registering since December.

And in the year to January, they say there's been a rise of 21% from tenants wanting rental accommodation.

Despite this growing demand, agents say that the number of properties that are being managed per branch has fallen to 191 in January - that's down from December's figure of 206. They say that rental property supply has not been this low since July 2019.

Tenants saw rent rises in January

Also, 42% of letting agents say that tenants saw rent rises in January, compared to December's figure of 32%.

The chief executive of Arla Propertymark, David Cox, said: "The results are a big blow for tenants with demand increasing but rental supply falling. Rent costs are being pushed up.

"Our research has found that as more landlords leave the private rental sector, tenants will miss out on half-a-million properties."

He added: "In the Spring Budget, the government should work to make the private rental sector more attractive to landlords rather than introducing legislation which squeezes the sector and will leave tenants worse off."

Most tenants suffer from financial stress

Meanwhile, a survey has revealed that 54% of tenants are worried about not being able to pay their rent because of financial difficulties.

They also admit that they are not confident about their own financial future.

The findings from Intus Lettings found that the average rent being paid per month is £530, with half of tenants saying that their rental home is not good value for money.

A spokeswoman said: "The findings are shocking and show how vital the requirement of affordable, quality housing is.

"Everyone has a right to live comfortably without stress over whether or not they can manage financially, but that's not the case for many. There is a responsibility on landlords to listen to the needs of tenants and to act accordingly."

The survey also reveals that 64% of tenants opt to rent because they cannot afford to save up for a deposit to buy a home, and more than half do not believe that their financial position will change in the next 10 years for them to do so.