Gazumping trend pushes up rent

The shortage of rental stocks means more and more tenants are being gazumped when they try to secure a property.
This trend helped push the average rent in England and Wales to £696 in May. It’s clear that tenants are now willing to offer above the asking price to get a home they’re happy with.
Research by LSL Property Services shows the average rent in England and Wales was £4 higher in May than in April and the typical rent was 4.4% higher than a year earlier.
“The rocketing cost of living, combined with ongoing difficulty first-time buyers are experiencing in obtaining a mortgage, is increasing the number reliant on rental accommodation,” said David Newnes, of LSL.
“With the fierce competition for homes, rental gazumping is becoming more commonplace and properties are being let beyond asking price, putting further upwards pressure on the market. For tenants, unable to buy, renting is becoming less affordable as demand booms. Rents are increasing at twice the rate of wages.”
The strong demand and short supply means high yields can be achieved and any landlord thinking of expanding their portfolio might find that now is a good time to do this.