Big bounce in number of new tenants looking for homes

Big bounce in number of new tenants looking for homes

The number of new applicants seeking to rent in March was up 21% from February, with demand outstripping supply as the number of available homes to rent rose only 5%.

According to Sequence – part of Connells – average rents for March were £704, unchanged from February. London rents averaged £1,375, almost twice the national average.

The number of agreed new tenancies was up 13% on the previous month, and up 19% on the year before.

Separately, the Spareroom website has reported that flat sharers are paying nearly 7% more than a year ago, with the average rent for a double room including bills now £497 per month compared with £465 a year ago. In London, average room rents are £660 per month, 20% higher than two years ago.

Matt Hutching, director of the website, said: “The fact that room rents are rising at a rate well above inflation is worrying. The bright side is that at least there is not the added cost of utility bills to factor in. ‘All inclusive’ is a silver lining in an increasingly bleak rental market.”

Unsurprisingly, landlords are feeling confident about the market, with high levels of tenant demand and low void periods.

A survey by specialist lender Paragon also showed that landlords are feeling more positive about the availability of buy-to-let mortgages, with 32% saying they thought finance was reasonably available. Paragon said that smaller investors are finding it easier to get finance than professional landlords.

 
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