Lack of family homes hitting rental market
The UK is facing a shortage of family houses available for rent, according to the Belvoir Q2 rental index.
The research found that whilst tenant demand for two to three bedroom semi-detached and detached homes remains very high there is a dearth of those property types.
Dorian Gonsalves, managing director of Belvoir, said: “Our survey of franchise owners across the network shows that almost 75% reported a shortage of three-bed semis and terraced houses, and there is a similar shortage of two bedroom homes.
“This is confirmation of the pressure that the private rental sector is currently under, and we are yet to witness the full repercussions of anti-landlord initiatives that were introduced by former Chancellor George Osborne at the last budget.”
When asked how many landlords had bought property to let in the previous quarter, Belvoir’s franchise owners surveyed reported that 45% of offices saw up to three landlords invest in more rental properties, while 32% saw four or more, suggesting that the increased stamp duty had not deterred professional, seasoned investors.
Just over half of tenants rented for periods of 13-18 months, while over 40% rented for 19 months or longer, suggesting that when tenants let quality properties from a professional, legally compliant agent, they are actually renting for longer than some reports suggest.
When it comes to void periods, the majority of franchise owners (47%) reported that the average void was up to one week and 40% reported that the average was up to two weeks.
The statistics also revealed a 6.75% year-on-year increase in rents, from £712 in Q2 2015 to £760 in Q2 2016. When comparing Q2 2016 to the 2015 annual average rent of £722, showing an increase of 5.25%.