Buy to Let

Rental demand rebounded in November

Christina Hoghton
Written By:
Christina Hoghton

Supply of properties to rent also ticked up last month, but there are wide variations in the market across the UK

Rental demand rocketed in November, according to Propertymark.

The trade association said that the average number of new prospective tenants was the highest on record last month, with 82 per letting agent branch – a significant rise from October’s figure of 71.

The number of properties managed per letting agent branch increased slightly, from 196 in October to 212 in November.

Regional split

Scotland had the highest number of properties managed per letting agent branch, at 304. Rental stock was lowest in Wales with just 106 properties managed per branch.

The East Midlands had the highest number of new tenants registered per branch with an average of 134. Wales recorded the lowest number, where there was only an average of 26 new prospective tenants registered in November.

Nathan Emerson, CEO of Propertymark, said: “Our latest survey has shown a rebound in tenant demand following two consecutive months of decline. Many landlords are aware of how difficult this year has been for tenants and as a result we are seeing rent increases fall for the second month in a row.

“The Private Rental Sector – which makes up a significant amount of the UK housing stock – is facing the reality that many landlords are increasingly considering an exit from the market. A key focus for Governments in the New Year needs to be how to incentivise more landlords to remain in the sector and attract new interest in the market.

“However, looking towards the sector’s immediate challenge as the pandemic rears its head once again, the unfortunate reality is that we may see an increase in the number of renters falling into arrears. It is therefore vital that vulnerable tenants are adequately supported during this time.”