Rental market most competitive on record as buyers hold back

Demand for homes to rent has jumped with four times the number of tenants per property available, the portal says.

Property to let

Demand for homes to rent has jumped in what Rightmove is reporting as the most competitive rental market on record with four times the number of tenants per property available.

Higher mortgage rates and financial uncertainty has swayed aspiring homebuyers to put their plans on hold in the hope that the new year will hold better prospects all round.

ENQUIRIES

A survey among letting agents found that on average they are managing 36 enquiries per property and spending nearly six hours managing viewings per property.

The number of people enquiring about homes to rent is up 23% on this time last year and the total number of home-movers in the market looking to rent or buy is just 1% lower than last year.

It’s completely understandable why some buyers are waiting for some more financial certainty.”

Tim Bannister, Rightmove’s property expert, says: “It’s completely understandable why some buyers, particularly some first-time buyers, are waiting for some more financial certainty.

Link to 2021 Predictions feature
Tim Bannister, Rightmove

“Now that there are signs that mortgage rates are settling down, the indicators are that they will stabilise at a higher level than previous buyers had been used to.”

 And Christian Balshen, Rightmove’s rental expert, adds: “The stock shortage means that agents are dealing with an unmanageable number of enquiries. The number of aspiring first-time buyers who have now had to turn to the rental market is exacerbating the situation further.

“We’re seeing some more properties coming to market, but nowhere enough to meet demand.”

PANDEMIC

Amardeep Lall, Head of Lettings at Manning Stainton, says: “Since the pandemic began, the number of tenants looking for a property has far outweighed the number of rental homes available. This means that it has become very competitive between tenants to secure a viewing and a property, because there are only so many viewings we are able to book in.”


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