Tenant demand surges amid supply shortages and budget concerns

Tenant demand surges amid supply shortages and budget concerns

0:01 AM, 17th October 2024, About An hour ago

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Tenant demand continues to outpace supply as landlords worry about the upcoming October budget.

According to Propertymark’s Housing Insight Report, tenant demand is on the rise, with registrations jumping from 88 in July 2024 to 112 in August 2024.

Demand continues to outstrip supply, with an average of almost 10 new applicants registered for each available property in August.

Landlords becoming more selective

According to Propertymark, in August, the average rent was £1,327 in England, £996 in Scotland and £175 in Wales.

Rental arrears also increased slightly in August by 2.6% as members report low-income households are struggling to find a place to rent.

A Propertymark agent from Cornwall says landlords are becoming more selective with tenants.

The Cornwall agent said: “There is currently a notable divide. Properties at the higher end of the market are struggling to let due to affordability constraints, while mid/lower range properties continue to see strong demand.

“This allows landlords to be more selective with tenants, meaning some vulnerable individuals face difficulties in securing housing.”

The agent adds: “We are also observing an influx of short-term let properties transition into the long-term residential market due to regulatory changes.

“Additionally, many landlords are approaching the market cautiously in light of pending legislation and the anticipated October budget.”

Mass evolution of the housing sector

In the residential sales market, Propertymark sales branches report a notable increase in stock levels, with an average of 48 properties available for sale at each member branch – a two-year high.

However, affordability challenges remain an ongoing challenge as Propertymark reports 38% of adults find it ‘very or somewhat difficult’ to afford rent or mortgage payments.

Nathan Emerson, chief executive of Propertymark, says the housing sector will continue to face challenges.

He said: “The housing sector continues to suffer from a long-standing absence of available stock, within both the sales and rental sectors. This, in turn, continues to impact sales values and rental prices across many regions.

“With a new UK government now in situ, there will be a mass evolution for the entire housing sector over the coming five years in terms of planning regulations, building safety, taxation, aspirations to achieve net zero and legislation such as the Renters’ Rights Bill.”


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