The number of people currently inquiring about homes to rent has increased by roughly 23% since last year, while a recent Zoopla report highlights that rental inquiries per estate agency branch are 46% above the 5-year average.
On the other hand, the current stock of homes for rent is 38% below the average of the past five years and 4% below what it was in November 2021, highlighting the supply gap that the UK currently faces.
In many cases, this has resulted in lets being agreed upon before viewings have even taken place and instances in which potential tenants are forced to outbid each other in order to secure a place to live. Inevitably, these trends have caused a sustained increase in rental growth across the UK which peaked at 12.3% in July of last year.
The continued demand and supply imbalance, as well as an increase in rental value growth, is fueled partly by a reluctance of first-time buyers to enter the market, which stems from a number of factors including the ongoing cost of living crisis and fluctuating mortgage rates.