The UK is becoming a hive for rental activity if new figures from one industry expert are to be believed. Data from Sequence, which owns letting brands like Barnard Marcus and William H Brown, has shown activity rising annually by 22 per cent, Property Wire reported. This is thanks in part to improved buy-to-let mortgage availability.
While activity increased at a slower slower rate of 20 per cent in London, it's clear the rental market is abuzz. Tenant demand has also grown by 17 per cent annually across the country and by five per cent in the capital. Soaring house prices are helping to keep demand high, with many people still priced out of the market. Meanwhile, new properties coming onto the market has increased 29 per cent annually and four per cent in June, the news portal explained. In London, this rise was lower than the national average at 13 per cent year-on-year. Rents now stand at around GBP 706 per month nationally and GBP 1,374 in London.
Stephen Nation, head of lettings at Sequence, told Property Wire: "The rental market across the country continues to be a hive of activity, with the number of new tenancies in June up nearly a quarter on last year. Landlords continue to flock to the market keen to take advantage of growing demand, up 17 per cent annually, and attractive mortgage products help. The dual increase in supply and demand is one reason why rents are remaining stable, though landlords are also pricing their properties keenly to secure tenants over the summer period."
However, the UK is continuing to suffer from a lack of affordable rental stock, particularly in key areas like London. The government has launched a scheme to help change this, offering GBP 10 billion in loan guarantees to get Britain building and deliver tens of thousands of homes to rent. Housing providers will be able to borrow money to invest in creating new buildings on more favourable terms. This will be delivered through the Affordable Housing Guarantee Scheme, run by Affordable Housing Finance, part of The Housing Finance Corporation.
- Friday 19 July 2013