- Rental listings decrease, prompting intense competition among tenants
- Prospective tenants face scarcity of properties, need immediate decisions
- More investment needed to address rental housing shortage
As the duration of listings decreases, a scramble to rent is emerging due to intense competition among tenants.
According to real estate firm Savillsc, two-bedroom rental properties on Zoopla are now available for purchase ten days less than the average listing period before the pandemic.
A scarcity of available properties and intense demand are compelling prospective tenants to decide almost immediately whether or not to submit a tenancy application.
According to agents and proprietors, The situation will likely improve with additional investment in the sector.
Adrian Draude, 32, acknowledged that upon their return from their honeymoon, he and his spouse needed to prepare for the degree of competition they encountered when looking for an apartment.
He stated, “We discovered ideal properties [on listing sites], saved them for later, and when we returned that day, they had vanished.”
Adrian described locating a residence in Guildford, Surrey, which they only recently completed, as “aggravating.”
One moment, it would be present at a particular location, and the next, it would be gone.
Adrian explained that house prices and high mortgage rates had rendered the couple’s goal of homeownership a distant possibility, forcing them to rent.
They had devoted years to assiduously saving. For this purpose, he returned to his parents’ residence for three years.
One effect of swiftly increasing rents, difficulties securing rental properties, and the substantial expenses of becoming a first-time buyer is the extension or return to the family residence.
According to official data, a third of young men, or 3.6 million individuals between the ages of 20 and 34, lived with their parents as of the end of the previous year.
Sure, potential tenants place an additional responsibility on their parents by requesting they serve as guarantors.
A guarantor is someone who pledges to pay rent in the tenant’s absence.
Although it is frequently a close relative or parent, some individuals have been compelled to consult their supervisor.
A guarantor was previously required only if a tenant failed the financial checks; however, agents and landlords increasingly request them.
Lily Jones and Cait Sullivan are both eager to move out of their parent’s home and are coworkers.
They reported having to request that their parents serve as guarantors, as this was a requirement for nearly every viewing.
“It is somewhat awkward,” Cait remarked. “You desire independence by moving out, but you must then inquire, ‘Can you still sign this form and serve as my guarantor?'”
Danger imminent
As Richard Valentine-Selsey, the director of residential research at Savills, stated, the circumstances are not anticipated to undergo any significant transformation shortly.
He stated that insufficient supply is entering the market and that more investment is required to make more houses available for rent.
He stated that this included both private landlords and large institutional landlords.
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On the other hand, the number of rental properties may decrease rather than increase.
According to a National Residential Landlords Association (NRLA) survey, 31% of respondents indicated their intention to reduce the number of rental properties they owned, while 9% intended to increase their rental offer.
The primary obstacle that tenants encounter is landlords selling up. “The only solution is to instill confidence in responsible landlords so they can continue to operate and maintain tenancies,” said Ben Beadle, chief executive officer of the NRLA.
According to the association, guarantor agreements may be advantageous for tenants who would otherwise have difficulty obtaining rental housing.
In contrast, Tom Darling, the Renters’ Reform Coalition’s campaign manager, stated: “While it is undeniable that there is a housing shortage, adding more landlords to the mix will not address the problem.
More regulation is required in the private rental sector, as well as a broader provision of social accommodation. A ban on landowners selling during the first two years of a tenancy has been proposed; this would help to alleviate some of the tension we are experiencing.
