Today I thought I’d focus on the rental market. I’ve spoken about the problems with the sale market a fair bit – in terms of the lack of property coming to the market for sale. Well, unfortunately, this is also true with the rental market too.
There is currently 60% fewer rental properties on the market than there was this time 12 months ago! That’s a massive number and drop in stock.
The below shows the level of rental properties on the market since January 2019, and you can clearly see that the lowest month is September 2021:
Demand for these properties is still high.
However, if we ignore the months of December and April 2020 (when we were in the middle of the first national Lockdown), the monthly supply of private rental properties is at its lowest point since our databases began.
So what happens next? Well, it could very well be a bit of a problem. Usually when people can’t find the property that they want to buy, they look to the rental market short term. However, there is now low supply for both the sales and rental markets. Therefore, the logic suggests that in the short term, property prices (both sales and rentals) will remain and continue rising – great for landlords and sellers, but not so great for movers.