Demand for lettings is continuing to soar as mortgage affordability bites but tenants are finding it harder and harder to find rental property, research from Goodlord and Vouch reveals today.

Eight out of 10 (78%) agents saw increased demand from renters over the last year with seven out of 10 (73%) tenants saying finding a new rental property was ‘one of the most stressful things they have ever done’.

RENTERS (REFORM) BILL

The Goodlord and Vouch sixth annual State of the Lettings Industry report 2023 also reveals more than a third (36%) of agents believe a ‘significant amount’ of landlords will leave in the next 12 months with under half (44%) of landlords feeling confident about upcoming regulatory changes – like the Renters (Reform) Bill. And worryingly for them, four out of 10 (39%) tenants say their biggest concern is paying the rent.

Over the last 12 months eight out of 10 (78%) letting agents saw increased demand for tenants looking for homes. But six out of 10 (58%) agents also reported an increase in the scarcity of available properties.

Three quarters (76%) of agents say this was due to landlords selling up or reducing their portfolio with six out of 10 (59%) saying it was due to not enough new landlords coming into the sector and just over half (51%) saying it was due to more tenants were remaining in rented accommodation.

Over the last 12 months, 95% of letting agents saw at least one of their landlords sell at least one of their properties and nearly a quarter of letting agents saw up to 20% of their landlords selling at least one of their properties.

While the much talked about landlord exodus is yet to come to pass eight out of 10 (80%) agents say they expect more landlords to leave the sector in the next 12 months – with more than a third (36%) saying they believed it would be a ‘significant amount’.

WORST WILL HAPPEN

The Neg revealed last month how early findings of the report revealed nearly half of agents believe that the worst will happen when the Renters (Reform) Bill is finally introduced.

William Reeve, Chief Executive at Goodlord, says: “We’ve all felt the pressures facing the rental market over the last 12 months but today’s report offers tangible evidence around what’s actually happening on the ground.

“We can see which forces are giving landlords pause for thought, where anxieties for tenants are coalescing and how agents are preparing for change.”

Tom Goodman, Managing Director at Vouch, adds: “Although it’s understandable to see rising concern from agents and landlords about the changes to come it’s more important than ever to see the positive in this shifting landscape.

“Upcoming legislation is a real opportunity for letting agents to demonstrate their value to landlords and tenants – meaning clued-up letting agents will continue to thrive.”