Here is the issue – there are more prospective tenants than there are rental properties.
Why there is an issue – Fewer properties are being built, more people are continuing to rent rather than buying due to the difficulties in securing a mortgage and more tenants are taking on longer tenancies – together all these issues mean that there are more people trying to rent fewer properties.
Traditionally, one reason why many people prefer to rent rather than to buy is because renting is more flexible – you can try living in an area before committing to buying property there. However, increasingly tenants are remaining tenants because amassing the large deposits required by the majority of lenders can be difficult.
In the past, tenants were more likely to move either on to buying property or simply move to another rented property. Again, this trend has changed with more and more tenants realising it is becoming increasing in the rental market and that it is better to secure a rental property and stick with it.
Competition in the Rental Market
Recent research reported by Up My Street has found that there are now on average five prospective tenants for every vacant flat or room. Such high levels of demand have resulted in rising rents - the average rise across the country being 4.1%.
In London the shortage of property is even more acute with at least 8 people competing for each available rental property. This has led to a rise in rents in the capital of 6.9%.
And that’s not all, the BBC reported that Oxford Economics predicts that rents could rise by 20% in the next 5 years.
What does that mean if you are trying to rent property?
You need to act quickly and decisively to secure a property.
- Make sure to register your details with a reputable agent. Negotiators will often phone registered applicants before the property is even available on the internet.
- Reserve a full day specifically for viewing properties and be prepared to make a decision that day.
- If you’ve seen a property that you love on the internet, don’t get emotionally invested – chances are it could have already been taken, but act fast to book a viewing when you see something you like.
- Be prepared to make a decision on the same day you view a property – if you’re renting with a partner or friends, make sure all the decision makers will be present at the first vewing. By the time you’ve booked a 2nd viewing for the other tenants the property could be gone.
- Have your deposit and paperwork ready to go at the viewing, that way you can offer easily and quickly. Being so prepared when it comes time to offer will tell the agent and landlord that you are serious about moving in and that can only appeal to a landlord.
- Make it clear to the letting agent that you are prepared to make a swift decision on a property and that your deposit and paperwork are all ready – the negotiator will know that you are serious and will be more inclined to phone you first with the latest new instructions.
Make sure you are registered with your local, multi-award winning letting agent to make sure that you hear about new rental properties before anyone else. Call us on 0208 567 6660 or register online here
Or browse the properties Northfields currently has available to let online here and if you see something you like, you can even book a viewing online.