Rocketing demand for rental accommodation has prompted one of Wales’ best estate agencies to offer landlord’s 20% off their fees. According to Thomas & Rose, tenant demand is at a record high, with up to nine tenants competing for properties. The branches in Whitchurch and City Centre have had hundreds of new tenants register each month and have seen sharp rises since the first quarter. The sharpest increase was in June, with the highest number in a single month since opening.
However, the rise in tenant demand is in sharp contrast to the fall in the number of new properties being offered to rent. They have fallen in the last three months.
The excessive level of demand has led to increases in rental prices. As more families turn to renting, four-bedroom properties have seen the highest increase, with the average rent rising to over £1,100 per calendar month. The highest demand is for two-bedroom properties in the CF10 area and three/four bedroom properties in the CF14 area. This level of demand is having a significant impact on the market, with properties being snapped up on average within two weeks – three days less that in Q1 and six days less in Q4 2009.
Simon Rees, Lettings manager, said:
“The number of tenants entering the market is at unprecedented levels – and we have yet to enter the peak season. The buy-to-let sector remains a good source of investment. However, the Government needs to do more to incentivise new landlords in order to ease the current shortage of properties. If tenant levels continue to rise at the same rate, this will be further exacerbated. If you are a landlord, please call us!”
Sean McMahon, Thomas & Rose Estate Agency Director commented:
“Strong tenant demand is great news for landlords, but will lead to rental inflation for tenants unless the private rented sector is able to expand to meet this demand. Pressure is building on the finite number of properties in the sector, because the lack of buy-to-let mortgage availability has prevented landlords from growing their property portfolios. In response to this landlords are now able to source buy to let mortgages online via our website at www.thomasandrose.co.uk and even apply online, the biggest advantage is that no broker fees are payable.
It is clear that confidence is high amongst the landlord community, which is reflected in the greater appetite for investment. There is obviously a dislocation between landlords’ intention to purchase and their actual ability to do so, given the continued scarcity of buy-to-let mortgage finance. Landlords still value residential property as an investment vehicle.”
