Tenants are staying longer in rental homes, according to ARLA Propertymark’s Private Rented Sector Report.
Data collected from members of the organisation continues to indicate signs of ongoing disparity in supply and demand with tenants remaining in their properties for longer periods of time.
According to the report, this is in part due to rock bottom levels of stock, meaning tenants have very little choice when looking to move.
Nathan Emerson, CEO of Propertymark, says: “They will also find fierce competition is pushing up prices of what is available often making it unaffordable to move.
“When an increase in tenants staying put for longer occurs, the churn of properties that would normally come back into the market begins to stagnate, feeding the issue further.”
Recent research analysed by the National Residential Landlords Association (NRLA) also showed demand for rental property to be at a record high.
According to new data from research consultancy BVA/BDRC, 62 per cent of private landlords in England and Wales report heightened tenant demand in the first quarter of 2022 – a record high.
Over the same quarter more landlords (11 per cent) sold property than purchased new property (eight per cent), making the supply crisis even more acute.
Given that renting privately is the first housing tenure most young people enter when they leave home or university, demand will only increase.
This is because the 15 to 24 cohort in the population is forecast to grow between now and 2030 by 866,000 (11 per cent).
The NRLA is calling on the government to scrap the stamp duty levy on the purchase of additional properties.
According to Capital Economics, removing this would see almost 900,000 new private rented homes made available across the UK over the next 10 years.