New agreed tenancies are at a three year high across UK, up 5% on month and 7% annually according to the latest Sequence National Rental Report.
National average rents continue an upward trend and are now £781 per month, up 11% annually and surpassing record breaking August levels.
London’s average rents stand at £1,456 per month, a growth of 7% annually while tenant demand in London is up 1% on the month, with five applicants for every property.
The supply of new rental properties is down 4% nationally and down 5% in London – falling short of demand.
Buy-to-let mortgage applications are up 15% on the month and a record-breaking 46% annually as buy-to-let continues its reign as the investment of choice.
Stephen Nation, Head of Lettings at the 300 branch Sequence Group which includes Barnard Marcus, William H Brown, Fox & Sons and other leading brands, comments: “As the sales market ignites the rental market continues to grow. The flexibility of renting remains attractive to tenants although we are noticing that renters are looking for more security in this fiercely competitive market. This has pushed the average length of tenancies from 12 to 19 months.
“New agreed tenancies are at a three year high with levels of demand up 9% annually across the UK and average national rents are also up 11% annually. The buoyancy of the market and low interest rates are continuing to attract buy-to-let investors in their droves, with the number of applications for buy-to-let mortgages up an unprecedented 46% annually, which is the largest annual growth for three years. This growth should impact supply over the coming months so we expect to see the number of properties available increase before the end of the year.
“The London market remains defined by a supply deficit, with more than five people applying for every new rental property. This disparity has been caused by a 1% monthly increase in tenant applications, coupled with a 5% monthly decrease in supply. If this under-supply continues it could continue to push rents up further in the Capital.”
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