Demand for rental properties on the rise in London

The rental market in London and the south-east of the UK is seeing an increasing amount of demand from older tenants, according to new findings.

Research published by Waterfords Lettings have revealed that there has also been a rise in demand from buy-to-let investors.

The report found that although improvements to the sales market resulted in a constrained supply of properties towards the end of 2013, attractive yields and potential capital appreciation are boosting confidence and optimism among property landlords.

Furthermore, the figures showed that while rents are still eight per cent higher than this time last year, the increasing competition and willingness among buy-to-let investors to purchase new houses to let out, will eventually filter through to tenants, and boost supply.

This will have the effect of stabilising rents and improving choice.

Commenting on the findings, Brendan Cox, managing director at Waterfords Estate Agents said that an increasing number of people are shunning property purchase in favour of renting.

He explained: "However, I think as a nation we have also adapted and renting is much more the norm nowadays. The flexibility and convenience it offers enables the likes of young professionals to follow job opportunities and families to secure desirable school places for their children, without the expense and responsibility of home ownership."

Research by the firm also showed that the number of people applying for good quality rental properties across Surrey and Hampshire has remained robust with tenant enquiries outstripping available stock ten to one.

This has been attributed to higher property prices, which has resulted in more people being priced out of the mortgage market.

Older residents looking to release capital on the property they own have also turned to renting.

"Lifestyle changes mean there is a much greater diversity of people opting to rent nowadays, and this shift in living arrangements is reflected in the change of demand for property type," Cox added.

Published 25th April, 2014

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