A scarcity of provide of rental properties is encouraging tenants to remain put and renew their tenancy agreements quite than transfer, new analysis has advised.
A complete of 73 per cent of lettings brokers mentioned that they had seen a rise within the variety of tenants selecting to resume their agreements throughout the previous 12 months.
The findings had been from lettings company physique Propertymark, which claimed that tenants had been selecting to remain put quite than transfer house, in a pattern that’s being described as ‘The Huge Keep Put’.
A complete of 73% of lettings brokers report an increase in tenants renewing their tenancy agreements
Propertymark mentioned a median of 127 new candidates had been registered per letting agent department final month.
On the similar time, lettings brokers reported having a median of 11 properties accessible to hire per department in July, the identical determine because the earlier month.
In the meantime, 82 per cent of lettings brokers reported month-on-month hire costs rising in July – which is a brand new document.
Nathan Emerson, of Propertymark, mentioned: ‘The personal rental market continues to be battered by the proper storm of excessive demand, low availability and affordability points that present no signal of easing.
The personal rental market continues to be battered by the proper storm of excessive demand, low availability and affordability points that reveals no signal of easing
‘Governments throughout the UK are all engaged in a tenant-focused reform of their personal rental sectors.
‘To spice up provide, additionally they want to contemplate the heavy tax burden on property homeowners, the impression of extra worthwhile and fewer regulated short-term lets, a lot of which stand empty for a part of the yr, and the shortage of recent properties being constructed to deal with the numerous wants of a rising inhabitants.’
Separate analysis carried out earlier this yr by Propertymark discovered that the variety of properties accessible to hire by means of letting brokers within the month of March halved between 2019 and 2022.
Throughout this era, 84 per cent of landlords who eliminated their property from the rental market did so to promote. Over half of the rental properties bought in March 2022 didn’t return onto the rental market.
A median of 127 new candidates had been registered per lettings brokers department final month
Earlier this month, analysis discovered that 4 in 10 folks below 30 had been spending greater than 30 per cent of their pay on hire, a five-year excessive which consultants say is unaffordable.
This age group spends extra of their earnings on hire than another working-age group, in accordance with information supplied to the BBC by property market consultancy Dataloft.
The rental disaster for under-30s comes amid a cost-of-living disaster that has seen inflation hit a 40-year excessive, with power and meals payments rising quickly.
The information discovered that whereas London has the very best rents within the UK, locations like Rotherham, Bolton, Salford, Walsall and Dudley have seen affordability drop probably the most for the reason that Covid pandemic.
Individuals are being pushed to supply greater than the ‘asking’ hire, and in some instances greater than they will realistically afford, in rental property bidding wars resulting from an absence of properties available on the market.
Jonathan Rolande, a property skilled with Home Purchase Quick, mentioned the ‘unprecedented disaster within the rental sector’ was being pushed by a ‘persistent lack of provide which urgently must be addressed by ministers with imaginative and far-reaching concepts’.