New tenancies agreed have increased 22% annually in the UK and 20% in London according to letting agent Sequence.
The company says UK tenant demand is growing at a rate of 17% annually and in London by 5%, as would-be buyers remain priced out of the buoyant sales market.
The number of new properties available to rent has risen by 29% annually and 4% on month as new landlords continue to flood into the market. In London properties available to rent are growing 13% annually and 1% monthly.
Buy to let mortgage applications have risen 29% annually and are over 50% up on June 2011.
National and London average rents are flat at £706 per month and £1,374 respectively, mainly due to increasing supply meeting the high demand.
Stephen Nation, Head of Lettings at Sequence, owners of Barnard Marcus, William H Brown, Fox & Sons and other leading brands, comments:
“The rental market across the country continues to be a hive of activity, with the number of new tenancies in June up nearly a quarter (22%) on last year. Landlords continue to flock to the market keen to take advantage of growing demand, up 17% annually, and attractive mortgage products. The dual increase in supply (up 29%) and demand is one reason why rents are remaining stable, though landlords are also pricing their properties keenly to secure tenants over the summer period.
“In London demand (up 5%) continued to marginally outstrip supply (1%) in June, though the ratio of new tenants to new properties is converging with the rest of the UK and as a result prices remain flat. Landlords, buoyed by low interest rates and attractive mortgage products, are all too aware of the increasing competition so they are looking to attract reliable, long term tenants and are pricing their properties to do so.”
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