There has been a sharp rise in the demand for rental property in the UK over the past year. As every new rental property is put on the market, seven tenants show an interest in signing the lease according to an article I came across in The Telegraph earlier this month.
This surge in demand has pushed up rental prices across the UK. Data compiled from hundreds of estate and letting agents reveal that rental prices outside London have increased by £27 per month and currently stand at £697, while those in London have risen by 6% to £1,515 per month.
Overall demand for rental properties has increased by 18% over the past 12 months. Traditionally, it has been the case that a robust rental market usually coincides with a weaker demand for houses to buy. However, while house prices suggest that the property market is cooling, buyer demand remains high. This suggests that there is currently a shortage of houses to both rent and buy.
There have been some assurances that this rental shortage will ease off in the coming months. Applications for buy-to-let mortgages have increased by 20% over the past year and the effects of this should be seen in the supply level over the next few months by easing the rental property shortage.
Are you currently struggling to secure a property to rent? If so, the prediction that the shortage of houses to rent will end should come as some comfort to you.