The number of new prospective tenants registering at letting agent branches has increased by 38% in a year and shows no sign of slowing.
Propertymark reports that an average of 187 prospective tenants registered in July compared with 127 in July 2022. Its Housing Market Insight Report also showed that while the average number of properties available to rent per branch increased slightly to 14, this was not enough to keep up with current demand.
July growth
It says the mismatch between supply and demand continued to grow in July with an average of 13 new prospective tenants registering per available property over the month. Propertymark also found that 70% of agents reported rents increasing month-on-month at their branch, down from 74% in the same month last year.
Meanwhile, research from Paragon Bank reveals that more than 90% of outer London landlords reported rising tenant demand in the second quarter of 2023, with demand also particularly strong in East Midlands and Wales. The imbalance in supply was leading to rent increases; 87% of landlords said rental prices were increasing in their local market, with 51% planning to increase rents across their own portfolios within the next six months.
Alarming disparity
Propertymark CEO Nathan Emerson says there’s an alarming disparity in the number of homes available to rent when compared with growing demand from prospective tenants.
“This gap is continuing to widen from already worrying levels,” he adds. “This mismatch in supply and demand is putting pressure on rents, with 6% of tenants per member branch falling into arrears doubling compared to February 2023. UK governments need to urgently address the fundamental problem of undersupply and look to adequately incentivise the provision of desperately needed homes in the private rented sector.”
