UK PRS Tenant Demand Increases Again

UK PRS Tenant Demand Increases Again

There was good news for UK property investors and buy-to-let landlords who are looking to expand their rental property portfolios, as it has been reported that the number of new applicants seeking to rent PRS properties in March increased by 21% from the number of applicants seen in February.

Tenant demand continues to outstrip supply as the number of residential properties available to rent only increased by 5%.

According to Sequence, who are part of the Connells group, average rents for March 2013 were £704 (GBP), unchanged from February.

London rents averaged £1,375 (GBP), almost twice the national average.

The number of agreed new tenancies was up 13% on the previous month, and up 19% on 2012, reflecting the strong current rental preferences and tenant demand.

Spareroom.com reported that flat sharers are paying nearly 7% more than they were a year ago, with rent for a double room including bills now averaging £497 (GBP) per month compared with just £465 (GBP) a year ago.

In London, average room rents are £660 (GBP) per month, 20% higher than they were in 2011.

Matt Hutchings, Director of Spareroom said: “The fact that room rents are rising at a rate well above inflation is worrying. The bright side is that at least there is not the added cost of utility bills to factor in. All inclusive is a silver lining in an increasingly bleak rental market.”

Buy to let landlords and property investors are extremely confident about the UK rental market, with high levels of tenant demand, strong rental yields and low void periods.

A survey by specialist mortgage lender Paragon also showed that landlords are more positive about the availability of buy-to-let mortgages, with 32% saying they thought finance was reasonably available.

Paragon said that landlords with small portfolios and new property investors just starting out in buy-to-let are finding it easier to get mortgage finance than professional landlords with large rental property portfolios.

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