Since the beginning of 2011 there has been a significant increase in tenant demand for private rented sector property. UK residents are adopting the European style of living choosing to rent rather than buy and this trend looks set to continue.
Even with a slight seasonal fluctuation, demand for residential rental property has risen rapidly throughout the year.
Tenant demand has increased by 10.8% in the 3rd quarter of this year, compared with the same period last year, and is also up by 11.9% from the 2nd quarter of this year.
The data comes from the Countrywide group’s quarterly research into the private rental sector, who also found that the volume of property viewings increased by 17.8% compared to the previous quarter, an annual increase of 8.2%.
Demand from investors is also strong, with an increase in the first-time investor category.
In the 3rd quarter of this year, 23.5% of all landlords were investing in property for the first time, compared to 18.7% in January 2011.
Many people see renting property as a realistic alternative to home ownership, either because they are unable to get a mortgage or are waiting for further house valuation falls or they are attracted to the flexibility that renting offers.
First time investors mean inexperienced landlords and rather than taking a chance based on applicant numbers, they should obtain a comprehensive tenant reference for all applicants and make sound decisions about their future tenants based on factual evidence.