Increase in numbers of new tenants
October 8th, 2010
A recent report issued by Countrywide Integrated Solutions, one of the country’s largest Letting agents, has shown that quarter three of this year saw a 19% rise in the number of new tenants looking for rental property. This means that in the three months leading up to October, over61000 new people have registered with them to enter the rental market. During 2010, the demand for residential rental properties has increased by over 40%.
It’s the old story of supply and demand, with mortgage criteria still very tight and with uncertainty in the employment market, more and more people are turning towards the rental sector rather than risking buying their own property. In the Midlands and the North, two bedroom houses are in the greatest demand with almost a quarter of potential tenants looking for this type of property. This means there are usually around 10 tenants applying for each rental as soon as itis advertised.
Some see the private rental market as the only option in the current economic climate, tough mortgage criteria and the Government’s cuts to the Social Housing Budget.
The high demand for rental property means that many landlords are able to maintain a god level of rental income whilst enjoying low mortgage interest payments and so maximising their return on investment.