A new investigation by ARLA has indicated that tenants in the West Midlands saw the largest rent increase in all UK regions during September.
Data from the report shows that rents in the region soared during the month, with 59% of tenants reporting a rise.
Rental Rises
This was in comparison to 22% in letting agents in London who noted rental increases in the same period. The UK average in September was 32%.
In addition, there was more success in the Midlands, this time in the East, as the survey found that there were 272 managed properties per member branch in the region. This was compared to the UK average of 182.
However, London recorded the lowest number of managed rental properties, with just 124 on average per branch, with supply still way behind satisfying demand.
Prominent
The North West saw the most prominent rental property demand, with agents registering 40 new prospective tenants per branch in September.
Demand continues to be prominent in the South, with ARLA agents in London, the South East and South West all registering an average of 39 new potential tenants per branch. However, agents in the East Midlands and Scotland are seeing the lowest number of new potential tenants coming through the doors.
Happiness
Tenants in the East of England also seem the happiest, with people in this region staying in their home for the longest period. On average, people in the area are staying for 20 months. However, those living in the North West only tend to live within a property for an average of 15 months at a time, which could be a reason why it has the greatest number of prospective tenants per branch.
Additionally, the report shows that rental properties in the capital have an average of 6 viewings before they are let, the highest in the UK. This is in comparison to properties in the East of England, which command an average of 3 viewings before a tenant moves in.
‘It’s interesting to see how tenants across the country are affected in different ways when it comes to the rental market,’ said David Cox, ARLA managing director.’ He believes that, ‘each region has its own issues, whether it’s a lack of suitable housing, no available housing at all, or over inflated rent prices.’[1]
Cox went on to say that, ‘it’s a surprise to see that those renting in the West Midlands are suffering from rent increases the most, when many of us would automatically think tenants in London would be the most prone to rent increases due to the competition in the capital.’[1]
‘The rental property market remains a significant concern, as prospective house buyers either can’t afford to get onto the housing ladder, or simply can’t find a house they are willing to buy, putting increasing pressure on the rental market. Until the issue of supply and demand is addressed, we will continue to see tenants across the country struggling to get a good deal on rental properties,’ he concluded.[1]
[1] http://www.propertywire.com/news/europe/uk-rental-marekt-rents-2015110311159.html