A UK monthly rent now accounts for 33% of the average salary as monthly rents, excluding London, rose 4% annually to £689 according to a recent report from estate agent Sequence.
Across the UK six tenants are chasing every available property, the highest number since 2011. UK tenant applications rose 15% annually while the supply of rental homes drops 17%.
Rents in the capital reached a four year high, increasing 10% annually to £1,515 – a staggering 60% of an average Londoner’s salary.
London tenant demand rose at more than nine times the rate of supply and buy to let mortgage applications increased 12% on the month and 14% annually.
Stephen Nation, Head of Lettings for Sequence, which includes Barnard Marcus, William H Brown and Fox & Sons, comments:
“Demand to rent across the UK has reached record highs, with six prospective tenants competing for every available rental property. This has caused rents to rise 4% annually and now accounts for more than a third of the average UK salary.
“The rental market in London is a hive of activity, with close to seven tenants chasing every available property. Demand to rent in the capital is rising at more than nine times the rate of supply reaching a four year high of £1,515 per month, up 10% annually.
“Applications for buy-to-let mortgages have reached the highest level in 2014, so far increasing by 14% annually in June and 12% since May. Buy-to-let mortgages are not subject to MMR scrutiny and thus have not been affected by the ruling. Change to pension annuities has also encouraged more investors to look to property for their pension pot as house prices and rents continue to rise.”
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