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Rents look set to rise as demand outstrips supply

Rental prices in the UK look set to increase as demand for property continue to rise, but the number of homes coming on to the market remains at a historical low.

A new joint report into the letting market by Reapit and Dataloft shows that there are ‘simply not enough properties to meet demand’, placing upward pressure on rental values.

The ‘Residential Real Estate Demand Monitor - Rental’ report, a quarterly analysis of the UK’s residential property rental market which combines data from a representative sample of lettings agency branches across the UK, shows that the letting market is seeing substantial activity with viewings up 13.3% year-on-year and lease signings up 3.5%, while supply has dropped 6.9%. 



Changes to the buy-to-let tax regime are reducing landlords’ profit margins, leaving many with little alternative but to exit the PRS due to the profit squeeze, and this is compounding the supply problem.


Gary Barker, CEO of Reapit, said: “There are strong market indications that upwards of 10% of landlords are actively considering selling their properties. Multiple vendors have reported similar information, and we are actively tracking this phenomenon.


“Our research has uncovered an imminent supply-side squeeze in the rental market. We see strong demand for properties with viewings up 13.3% and lease signings up 3.5% over the year, while overall supply is down 6.9%. Rents are unchanged year on year, but as rental inventory dries up, it’s inevitable that rental prices will increase.


“Landlords deciding to sell their properties will further squeeze the supply-side of the rental market. There are simply not enough properties to meet demand.”


Want to comment on this story? If so...if any post is considered to victimise, harass, degrade or intimidate an individual or group of individuals on any basis, then the post may be deleted and the individual immediately banned from posting in future.

  •  G romit

    But it's Government policy to drive small Landlords out of the market, and so drive up rents, and such policies are being supported by Shelter, Generation Rent, et al.
    ...... and its working the PRS is shrinking 4,000 rental properties per month.

  • icon

    Well I never. Rents rising as supply falls, y’say? Wow. If only somebody had realised that over 3 years ago and predicted all this.

    Oh, wait...


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