Demand from tenants increased in the three months to January, raising the likelihood of rents heading up in the coming months.
New figures from the Royal Institute of Chartered Surveyors show tenant demand edged up in the quarter in question, further widening the gulf between supply and demand that already exists.
Allison Thompson, managing director at property specialist Leaders, says: “We have seen an average of more than five applicants per available property in recent months, highlighting just how high demand is right now for homes to rent.
“As such, it is no surprise to learn the number of tenants looking for a property increased once again in the three months to January. We expect this trend to continue throughout the rest of 2018, making it a great time for landlords to make their properties available.
“Landlords who take advantage of the buoyant market by putting their property on the market are sure to attract significant interest from tenants and, in the vast majority of cases, numerous applications to rent it.
“With demand so high, the obvious next step will be a rise in rents, which will only serve to improve the prospects for landlords in the sector by allowing them to enjoy an even greater return on investment.”
RICS predicts rents are set to remain relatively stable in the south-east in the coming months, but increases will be seen in all other areas of the UK.
In addition, the organisation suggested it does not believe the supply of properties to rent is likely to substantially increase in the near future.
For more information or advice on letting or renting a property in your area contact your local Leaders branch.