More renters staying put due to dwindling stock

More renters are choosing to renew their existing tenancies rather than moving thanks to the lack of stock, Propertymark research shows.

Three quarters (73%) of agents have seen an increase in the number of tenants renewing their tenancies over the past 12 months.

Nathan Emerson, chief executive of Propertymark, said: “The private rental market continues to be battered by the perfect storm of high demand, low availability and affordability issues that shows no sign of easing.

“Governments across the UK are all engaged in a tenant-focussed reform of their private rental sectors. To boost supply, they also need to consider the heavy tax burden on property owners, the impact of more profitable and less regulated short-term lets, many of which stand empty for part of the year, and the lack of new homes being built to cope with the varied needs of a growing population.”

Four in five (82%) member agents reported month-on-month rent prices increasing in July – a new record.

Indeed, pressure on rents has been steadfast since spring last year.

An average of 127 new applicants were registered per member branch in July, while this number has been on a slow upward trend since February.

Propertymark’s members reported having 11 properties on average per member branch that were available to rent in July – the same figure as last month.

Comments 2

  1. It’s not just the difficulty of finding somewhere new to rent that is putting tenants off moving. You also have to consider rising open market rent levels. Contrary to popular belief most landlords do not increase rents on a whim. In my experience many smaller landlords (who tend to own their rental properties outright and are the backbone of the PRS) do not increase rents regularly, or if so, only by modest amounts. This is because they have some empathy with tenants and they are happy enough with the return they are getting, possibly the rent is a “top up” not their main income. A tenant leaving also costs a landlord money in terms of renovation costs, loss of rent while renovating and the costs of admin associated with taking on a new tenant who may or may not turn out to be sound . Many existing tenants are being insulated this way. Open market rent has risen disproportionately at the lower end of the rental scale. In my area market rents at the lower end have risen by some 40% over the last couple of years from typically £520/month for a two bed terraced property to £725/month. The extra £205 a month coupled with moving expenses would be prohibitive for many tenants so they stay put. At the same time the £725/month rent would appeal to “richer” tenants who are currently paying a lot more and are seeking to downsize to reduce their rent. If one of my “insulated” tenants were to leave and I decided to rent out again rather than sell up, as many others are, I would of course initially seek the current market rent. However, this is unlikely to happen as my tenants are staying put.

  2. Nothernlandlord you are of course correct. The Government want the letting market and landlords in particular to be less amature and more professional. This will mean rents are veiwed every year to the maximum rent achieveable. The fools that have been landlord bashing will come to realise too late to results of their efforts to drive out smaller landlords. The Government and so called housing charities who house no one are driving towards a cliff edge at full speed and a massive crash is imminent, forseeable and obvious to all but the politcial idiots too busy buying votes and those with daft political ideaologies. The great british public do not understand what is happening and go along with the landlord bashing sport promoted by ill educated media reporters. As the man with the board over his shoulders say THE END IS NIGH; at least it will be for many tenants.

Leave a Reply