Number of new private sector tenants at record high - research

Published by Jon Land for 24dash.com in Housing

More than 275,000 new tenants registered for private rental accommodation in 2011, a 24 percent increase on 2010, according to figures published today.

Overall, London saw the biggest spike in enquiries, with a 35 percent increase in tenancy applications recorded over the course of the year, research from Countrywide shows.

The property services group’s quarterly research into the private rental sector also confirmed that the demand is causing a growing number of rental properties to be let before they are even advertised.

Those properties that do make it to market took an average of 13.6 days to be let/occupied in 2011, a reduction of 1.2 days compared to the 2010 average.

The findings also reveal that whilst cohabiting couples under the age of 35 continue to make up the largest proportion of new tenants looking to rent (at 23.4 percent in Q4 2011), a growing number of families are entering the private rental market, an emerging trend which was found to be most evident in the North and South East of the UK.

Nick Dunning, Commercial Director at Countrywide, said: “We are in the midst of a rental boom as renting has become the new norm. Despite gradual improvements in property levels, it is not enough to satisfy the ever-increasing levels of demand.

"With a record number of tenants entering the private rental sector, there is a vast shortage of properties available in all areas of UK, which could potentially fuel a steady rise in rent prices throughout 2012.”

Meanwhile, Nigel Stockton, Countrywide's Financial Services Director, has called on the Government to tackle the number of empty homes by making them available to the buy-to-let market.

"In November’s housing strategy, the Government announced some measures to tackle the problem of empty homes; with over 720,000 empty properties in the UK. We welcome any Government support to encourage investment and the transfer of these properties to the buy-to-let sector in order to alleviate the current supply and demand imbalance.”

Countrywide's research is based on a national survey of more than 300 branches to track key market trends among some of the industry’s biggest property brands, such as Hamptons International, Bridgfords, Slater Hogg & Howison, Taylors, Dixons and Fulfords.