39% rise in the number of tenants

A recent study has shown that the number of tenants jumped by 39 per cent over the period of the last twelve months because many prospective homeowners couldn’t afford to buy a property yet.

Spareroom.co.uk reported that the number of tenants since the start of 2011 increased by 13 per cent compared to the same period last year.

Nevertheless, new rental stock entering the market decreased 15 per cent year-on-year at the beginning of the current year.

Matt Hutchinson, Spareroom.co.uk, suggested that the situation is unlikely to improve in the coming months due to the imbalance between supply and demand.

He commented that those who would usually plan to purchase their first property after renting for several years, were either unable to do that because they couldn’t get approved for a mortgage or were hesitant about applying for one because of the likelihood of interest rate rises and fluctuation of house prices.

The problem is that existing rental homes are off the market longer and, as a result, there is insufficient number of new rental properties available.

At the moment, an average of five applicants are competing for every room available for rent in the country, with the average price being about £350 per month.

 


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