According to research into properties on their books, a surprising turn of events is beginning to show itself as new tenancies agreed have risen by 22% year-on-year across the country, with a 20% rise in London.
Furthermore, across the country there has been 17% growth in tenancy demand, however London has seen just a 5% rise in demand.
The research also points to a 29% annual rise in the numbers of new properties available to rent, with just a 13% rise in London.
What this means is supply is now rising higher than demand. As a result, average rents across the country are now flat at £706. The average rent in London also remains flat at £1,374 as the increased supply quashes any potential increases.
Stephen Nation, head of lettings at Sequence, said:
“The rental market across the country continues to be a hive of activity.
“Landlords continue to flock to the market keen to take advantage of growing demand, up 17% annually, and attractive mortgage products.
“The dual increase in supply (up 29%) and demand is one reason why rents are remaining stable, though landlords are also pricing their properties keenly to secure tenants over the summer period.
“In London demand (up 5%) continued to marginally outstrip supply (1%) in June, though the ratio of new tenants to new properties is converging with the rest of the UK and as a result prices remain flat.
“Landlords, buoyed by low interest rates and attractive mortgage products, are all too aware of the increasing competition so they are looking to attract reliable long-term tenants, and are pricing their properties to do so.”
source: arla.co.uk
Image: Dirk Ercken/Shutterstock
No comments:
Post a Comment