Shortage of family homes available to rent, agent claims

There is a shortage of rental properties suitable for families, according to the latest rental index from 170 branch letting agency Belvoir.

The majority of the firm's franchise owners have reported a shortage of family homes to rent, despite high demand for two and three-bedroom semi and detached homes.

Almost 75% of the network's offices reported a shortage of three-bedroom semis and terraced houses, with a similar shortage recorded for two-bedroom properties. 

The firm's figures for Q2 2016 also suggest that the introduction of the 3% stamp duty surcharge in April hasn't deterred professional, seasoned investors. 

Some 45% of Belvoir's network reported that up to three of their landlords increased the size of their portfolio, while 32% said four or more of their landlords had recently invested in further rental properties. 

Over half of Belvoir tenants rented for 13-18 months, while around 40% rented for 19 months or longer.

Almost half of the firm's franchise owners reported that the average void period was one week, while 40% said it was closer to two weeks.

During Q2, the agency's average rent was £760 per month, up from £712 in the same period last year, representing an annual increase of almost 7%.

Belvoir's managing director, Dorian Gonsalves, says the supply/demand imbalance of family homes in the Private Rented Sector is confirmation of the pressure currently on the UK's rental market.

“We are yet to witness the full repercussions of anti-landlord initiatives that were introduced by former Chancellor George Osborne at the last budget,” he adds.

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