Tenant demand soars to yet another peak

Tenant demand reached new heights in the third quarter of this year, with over 61,000 new tenants registering at Countrywide Residential Lettings.

This was a 19% rise on the previous quarter, and a 44% jump since the start of the year.

However, CRL reports that available properties fell by 6.9% in the third quarter, leaving an average of 5.8 tenants vying for each property. For the most popular two-bedroom houses there are 10.2 tenants.

Properties are being rented out on average within 13 days – seven days quicker than the start of the year.

In central London, Benham & Reeves Residential Lettings, which has ten offices across the capital, describes the shortage of properties to rent as “severe”.

The firm says that in the three months to October the firm had 23% fewer homes available than during the same period last year.

The trend is further fuelled by tenants who are unwilling to move because they know they stand little chance of finding anything else. A record 64% renewed their tenancies in the last quarter, one-third higher than in the same period of 2009.

Marc von Grundherr, director of Benham & Reeves Residential Lettings, said: “The market is so competitive now, we’re routinely seeing rival applicants offering above the asking rent.

“Even dramatic gestures do not guarantee success. Some of the firm’s corporate tenants offer two or three years’ rent up-front; ironically, this can have a negative impact on a landlord’s tax status, so it does not always mean a deal can be done.”