The rental market in 2016 in the UK continues to rise with an imbalance in rental prices and the amount of properties available. This has been an ongoing problem for some time now according to ARLA Propertymark organization. Prospective renters see increases in market rental prices while shopping for new places and current tenants see increases in monthly rental charges.
Just in the New Year alone a 31% increase in the number of tenants per branch has occurred. However, the number of rental properties has only increased 3% in January of the current year. Big influences on the increases are the level of rental stock available and the cost of letting agent fees, which take a bite out of the property budget. Efforts to recover the costs from the hits the market are usually responsible for the inflation of rental prices.
Key Takeaways:
- The number of people looking for a home to rent in the UK is much bigger than the rental supply available, the latest monthly research shows.
- As expected, the New Year brought with it a flurry of activity in the rental market. While supply of rental stock rose slightly, the number of prospective tenants increased by a much bigger margin.
- When supply and demand are out of kilter, as they have been for so long now, the market isn’t balanced and fair for tenants, and rent prices will just continue to rise.
Key Quote:
"The number of people looking for a home to rent in the UK is much bigger than the rental supply available, the latest monthly research shows."
Read the full article:
http://www.propertywire.com/news/uk/rent-rises-inevitable-tenants-still-chasing-fewer-homes-rent-uk/
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