Six tenants are chasing every property in the UK, according to the latest figures from Sequence, the highest number since 2011.
Its report indicates that tenant applications have rised 15 per cent in the last year, while the supply of rental homes has fallen 17 per cent.
Rents in London are also at a four year high, up 10 per cent annually to £1,515. In the UK overall, rents now account for 33 per cent of the average person's monthly salary, although that figure is closer to 60 per cent for Londoners.
Stephen Nation, Head of Lettings for Sequence, which includes Barnard Marcus, William H Brown and Fox & Sons, said: "Demand to rent across the UK has reached record highs. The rental market in London is a hive of activity, with close to seven tenants chasing every available property.
"Applications for buy-to-let mortgages have also reached the highest level in 2014, so far increasing by 14 per cent annually in June. Buy-to-let mortgages are not subject to MMR scrutiny and thus have not been affected by the ruling."
© ACADEMIA ARALAR. Estella, Navarra.
It is true that renting a house seem to be better that buying one when we are young and do not know certainly what we are going to do.
ReplyDeleteIt dose not seem weird to me to see that London has that big numer of rented houses; a lot of people go to study there, and the commun thing is renting a house for a year or some years if you are llowed to do so. However if the prices continue raising that much the number of rented houses wil drop.
It is not weird to see how prices become higher in London, that is the law of the supply and demand. I mean, if a lot of people go to live to London but not forever, a lot of rented houses are needed. The owners of the houses know that the tenants will pay what it is asked because they need to leave there and they rise the prices.
ReplyDeleteIf there was less demand in London the prices would be lower. However I think that they should think a bit more in the tenants and put the prices lower, but being realistic, that won't happen.
The more demand the higher the prices are. This is something that in my opinion happens everywhere and is difficult to change, and in a place like london that the daily life is not very cheap, even more.
ReplyDeleteIs true that people should think a little bit more in young people but the truth is that all of as whant to earn the most money we can, so if someone is going to pay high prices for renting a house, why they would reduce the price? It's hard but true.
Plenty of young people goes to London to live for a few time, so there are so many rented houses. Londoners take advantage of this situation and they rise the prices. Like Ana says this is the supply and demand law. It,s also true that they should think more in young people that they don,t have as much incomes as adults, but everybody thinks on him/her instead of in others.
ReplyDeleteThis happens in everything and everywhere, if a product doesn´t have demand, his price will decrease, and if it has demand, it will rise.