The gap between rental demand, as measured by search activity, and supply, measured by available properties for rent, has widened further, according to Rightmove’s latest Consumer Rental Forecast.
It found that search activity continues to set records, whilst available stock is down five percentage points on last quarter as the supply of new rental properties remains muted and tenants stay in properties longer.
Consequently, the upwards rental pressure Rightmove has been reporting since the beginning of 2010 seems to have even more headroom, and this can be seen in Rightmove’s latest findings that 53% of tenants anticipate that their rents will be higher still in 12 months’ time.
Miles Shipside, director of Rightmove, said: “The momentum of the runaway rental train shows little sign of slowing. New tenants are still looking to clamber aboard in their search and are finding a dwindling number of places to rent as existing tenants have limited exit opportunities and stay put.