New tenancies agreed have increased 22% annually in the UK and 20% in London, according to the latest data from Sequence, owners of Barnard Marcus, William H Brown, Fox and Sons and other leading rental brands.
The figures also shows that UK tenant demand has grown at a rate of 17% annually and in London by 5%, as would be buyers remain priced out of the improving sales market.
The number of new properties available to rent have risen by 29% annually and by 4% in June compared with the previous month as new landlords continue to come into the market. In London properties available to rent have increased by 13% annually and by 1% monthly.
Also the data shows that buy to let mortgage applications have risen 29% annually and are over 50% up on June 2011.
National and London average rents are flat at £706 per month and £1,374 respectively, mainly due to increasing supply meeting the high demand for rental properties.
‘The rental market across the country continues to be a hive of activity, with the number of new tenancies in June up nearly a quarter on last year. Landlords continue to flock to the market keen to take advantage of growing demand, up 17% annually, and attractive mortgage products,’ said Stephen Nation, head of lettings at Sequence.
‘The dual increase in supply and demand is one reason why rents are remaining stable, though landlords are also pricing their properties keenly to secure tenants over the summer period,’ he explained.
He also pointed out that in London demand is up 5% and continued to marginally outstrip supply in June, though the ratio of new tenants to new properties is converging with the rest of the UK and as a result prices remain flat.
‘Landlords, buoyed by low interest rates and attractive mortgage products, are all too aware of the increasing competition so they are looking to attract reliable, long term tenants and are pricing their properties to do so,’ he added.