Across Great Britain there were fewer applicants looking to rent in June compared with the same period last year, while the number of homes available to rent fell 10% year-on-year. As a result, there were 6.3 tenants looking for every home available to rent.
And in the North West, the region recording the strongest rental growth last month, demand heavily outweighed supply. Stock levels in the region fell 26% year-on-year while the number of people looking to rent increased 6%. As a result, there were 12.1 applicants looking for every property available to rent, the highest ratio in the country, and up from 8.4 in June last year.
Commenting Aneisha Beveridge, Head of Research at Hamptons International, said:
“Activity in the rental market has returned to pre-lockdown times, with the number of new tenancies agreed last month rising to February levels. Last month’s data gives us a first look at how rents on newly let properties have been affected by the economic damage so far, and it’s clear that there are regional differences.
“In June rents fell in three out of the eleven regions in Great Britain, with London recording the deepest decline. Rising stock levels in the capital, particularly in Inner London, combined with falling demand from new applicants caused the record falls. The effect of lockdown has resulted in fewer international tenants, particularly students, as well as an increase in the number of London tenants leaving the capital.
“However the flexibility renting offers has boosted demand in the Midlands and North. Rents in the three combined Northern regions rose 3.0% in June, six times the rate recorded in the same period last year.
“While the stamp duty changes announced last week are most likely to benefit landlords looking to buy in London and the South, higher yields will continue to entice investors further North. Any additional increase in rental stock in London could put more downward pressure on rents. But longer-term, the prospects for rental growth in the capital will depend on whether the short-term increase in supply remains, and most importantly, what the lasting economic damage means for rental affordability.”