Residential Landlord recently reported that the number of new rental properties has dropped by 20% over the last quarter "due to the market going through a sharp correction in the balance of supply and demand".
At the onset of the credit crunch many would-be sellers opted to offer their properties for rental rather than try to sell their property in a tough market. This resulted in a huge surplus of rental stock that caused rents to fall. However, recent changes to the sales market, where a build-up of buyers has created demand that is buoying up sales prices has encouraged many reluctant landlords to venture back to the sales market and remove their rental properties from the lettings market.
Residential Landlord reported that in a recent survey it was found that in the three months to October that the number of new tenant inquiries increased by 11 percent. Conversely, the number of new rental properties fell.
The survey showed that the south-east region has the highest proportion of new tenant inquiries, with 3.3 tenants vying for every new property that enters the market.
This strong tenant demand is pushing rental prices up.
As a result of the shortage of rental properties Northfields are currently looking for more rental stock. Would you like to know how much your property is currently worth in this market? Call our award-winning lettings team on 0208 567 6660 for your free valuation now.
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