The current rental market is experiencing high demand, with letting agents receiving an average of 25 email and phone enquiries from prospective tenants for every available rental home. This surge in demand is attributed to several factors, including a continuous rise in average rental prices over the past two years and an increase of over 40% in the number of tenants looking to move compared to 2019. In contrast, the number of available rental homes has decreased by 35%.
This intense competition among tenants for limited rental properties is a notable shift from previous years, where agents received eight enquiries per property in 2019 and five less in May of the current year. The shortage of available rental properties, coupled with high demand, has contributed to record rents and challenges for tenants navigating the market.
Despite these challenges, there are signs of improvement, as the number of new rental properties entering the market has reached its highest level since the end of the previous year. While the impact on rental prices may take some time to materialize, the improving trend in supply and demand could potentially slow down the pace of yearly rent increases more significantly in the future.
Tim Bannister, a property expert, notes that although the market remains challenging for tenants, the increasing supply of rental properties is a positive development. The ongoing improvement in the balance between supply and demand may eventually lead to a moderation in the rate of yearly rent rises.
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