Tenant demand hits new records across the UK

The rocketing growth of the private rented sector has been highlighted by a record 48,332 new tenants registering in the first quarter of this year with Countrywide Residential Lettings.

Applicants rose by 48% over the last quarter of 2009, and by 36% compared with the first quarter of last year.

In March, there was the single largest number of new tenants’ registrations since Countrywide records began

Countrywide’s lettings division surveyed its UK network of 204 branches and found that there is now an average of 4.9 tenants vying for every property, compared to 2.9 tenants in January. The worst shortage is in the south-east, where there are 6.8 tenants for each property.

With demand outstripping supply, rents have gone up 2.5% to an average £683 per month and void periods are at 17 days.

John Hards, Countrywide Residential Lettings’ co-managing director, said: “Demand for rental properties has rocketed over the last few months and the shortage of properties is pushing up demand across the country as house hunters continue to struggle to get on the property ladder. I suspect this will continue while people wait to see how the impending election affects the property market.

“Buy-to-let landlords are using this as an opportunity to increase their property portfolios as rental yields improve in key locations, which is helping with the severe shortage of supply in many locations.”