Landlords Experience Surge in Demand as Limited Choices Drive Up Rents

Landlords in the UK are witnessing a significant surge in tenant demand, driven by a shrinking supply of rental properties in the private rented sector (PRS), according to a survey by bridging broker Finbri. The survey of 755 landlords revealed that 71% experienced higher demand last year, with two-bedroom rental properties now spending an average of just 15 days on the market, down from 25 days pre-pandemic. This imbalance is leading to rising rents, with the average UK rent increasing by 7.2% to £1,223 per month.

Finbri attributes the increased demand to a shortage of rental properties, as landlords exit the market, new rental properties are not being built at a sufficient rate, and tenants struggle to transition from renting to homeownership. The strongest demand is seen in London, where 83% of landlords reported increased interest, followed closely by the South West at 82%. Despite the high demand, 32% of landlords sold at least one of their rental properties last year.

The survey also indicated that 51% of landlords plan to raise rents to cover additional expenses, reflecting the broader trend of rising costs in the rental market. Even in regions like Yorkshire and the Humber and Wales, where less than 70% of landlords reported increased demand, the figures still showed a notable rise of 67% and 63% respectively.

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