UK sees rise in new tenancies and rent costs
Published by Max Salsbury for 24dash.com in Housing and also in Finance
Private housing rents 'continuing to fall' - RICS
The number of new tenancies has risen by 15% in the UK in the past year, with rents rising by 8%.
The average monthly rent cost in the UK now stands at £758, and at £1,395 in London.
In the same period, buy to let mortgage applications rose by 17%.
Stephen Nation, head of lettings for property firm Sequence, said: “The rental market across the country has started the year with renewed vigour and increasing levels of demand. We have seen a surge in the number of new tenancies this month, up 15% annually across the UK and 17% in London as tenants compete to secure their property at the start of the year.
“This high level of activity is due to the sheer volume of new tenants coming into the market - new tenant applications increased by 6% annually across the UK and 10% in London. Across the UK the supply is keeping up with demand, with new rental properties increasing by 6% annually, however, in London there is a shortfall, down -4% annually.
“The good news is that buy to let remains the investment of choice across the UK, with the number of new mortgage applications increasing by 17% annually. This news comes in spite of the retraction of funding for lending to the mortgage market and highlights just how strong this market is. The pipeline of new investors we are seeing will continue the flow of properties onto the market and appease the demand, which should in turn, keep rents stable.”