Rightmove has found that the private rented sector is struggling under the weight of demand as an increasing amount of people turn to private residential lettings rather than buying a property. The current economic climate is making people shy away from buying but also the restrictions imposed on lending is also having repercussions in the housing sector.
House rent is on the rise to with over 52% of tenants said to be expecting to pay more in rent over the next year. The rise is due to the relentless demand for good quality property lettings with East Anglia and London experiencing the highest demand and the most shortages.
There are different tenant competitors in the market now according to Miles Shipside, director of Rightmove. There are those who have left the family home wanting their own independence (or “traditional tenants”) and those who would normally buy but are either priced out or can’t get the financing.
Both groups entering the market at once coupled with low supply adds to the rush for property rentals.
Rightmove’s director, Miles Shipside said “Letting agents in many areas are reporting an insatiable demand, with prospective tenants coming from all backgrounds and requiring all types of property.”