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Property shortage for UK's renters

Monday, July 12, 2010

Source: Catherine Deshayes

With the UK set to follow in the footsteps of its European neighbours and become a nation of renters, Email4Property.co.uk reports that current demand for rental property is far outstripping supply...

Despite research by Key Note, in which nearly 95% 16-19 year olds questioned said they expected to rent rather than buy their home in the future, the UK's largest network of estate agents says that on average lettings agents have seen the number of properties they have to let 20% down on average from last summer.

Steve Lees, Head of Marketing at Email4Property.co.uk, comments, "The lettings market has contracted over the last few years, with the number of available properties coming onto the market slowing dramatically. Fierce competition from tenants means that when properties do become available they are snapped up. As a result, landlords have also been able to push up rents.

"The government offered a small pick-me-up to the rental sector in the form of a lower-than-expected CGT increase. But we also need to see buy-to-let lending restrictions relaxed, encouraging even more landlords to invest in the market. Once this happens, I would expect to see a slow but steady increase in supply, benefitting those who are unable to find a property and bringing rental prices down."

Nick Barrow, Branch Manager at Linley and Simpson in Leeds, adds, "The number of properties on our books has fallen in the last 12 months by at least 20%, while the numbers looking to rent has increased. This is because many tenants are deciding to stay in their current properties rather than terminate contracts and there are fewer individual buy-to-let landlords entering the market. In Leeds, a shortage of three bedroom family homes to let has meant that rental prices have also increased by 5-10%."