There has been a sharp rise in demand for rental accommodation, according to the latest report from haart.
Data from the letting agency shows that the number of tenants entering the market across England and Wales increased by 23% in March, and is up by 1.8% on the year.
But despite a rise in demand, haart report that average rents dropped by 0.7%. The average rent now sits at £1,326 across the England and Wales.
Demand for property in London has risen by 16% on the month, and by 11.2% on the year, helping to push rents up by an average of 0.4%.
With tenant demand growing, the number of landlords registering to buy has risen by 21.9% on the month, although it is worth pointing out that demand has fallen by 8% on the year.
In London, the number of landlords looking to add to their portfolio increased by 18.4% on the month, but is down 23.6% on the year.
The data also reveals that the volume of buy-to-let sales have increased 4.5% on the month in London and are up by 3.5% across England and Wales. This is down 4.2% on the year in London and by 12.2% on the year across England and Wales.
Paul Smith, CEO of haart, commented: “Despite a barrage of restrictions and additional costs as a result of government policy, many are recognising the value that can still be found in buy-to-let property, especially in comparison to the overvalued and faltering stock market.
“Although conditions are much tougher, demand from tenants is growing and if you are willing to look slightly further afield there are still yields of around 7% to be gained.”