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Rental demand continues to rise

Rental demand continues to rise

Category: Mortgages

Updated: 02/08/2011
First Published: 01/08/2011

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

The unyielding rise in demand for property to rent across the UK shows no signs of stopping.

Against a backdrop of agents struggling to satisfy the demand for rental properties, it is thought that one in five households will rent privately within the next five years.

The market has grown considerably in recent years, as many people have shied away from an uncertain mortgage market owing to unpredictable prices, a lack of available credit and difficulty in raising a deposit.

Last week, Moneyfacts.co.uk reported that the number of buy-to-let mortgages has grown threefold over the last two years.

There are currently 505 buy-to-let mortgages available, a considerable rise from July 2009, when the number of products fell to a miserly 187.

And with potential renters queuing round the block to get their hands on the keys, the average costs of renting a home soared through the £700 barrier for the first time in June.

But despite the high cost associated with renting and the potential problems with owners and occupiers, the National Landlords Association (NLA) says that relations between tenants and landlords are almost completely positive.

It found 61% of landlords have 'very good' relations with their tenants, while a further 34% describe their dealings as 'good'. Three per cent say their relationship is 'adequate' while less than one per cent say it is 'poor'.

The survey also found 36% of landlords communicate with their tenants at least every month, while about four in ten have contact 'when the need arises'.

"The NLA believes that the private rented sector will play an important part in helping to meet the demand for quality housing in the coming years," said David Salusbury, chairman of the NLA.

"So it is pleasing to see that almost all landlords have a good relationship with their tenants and that both parties are content.

"The best way to ensure good relations between the tenant and landlord is to ensure the right tenant is selected for the property.

"The NLA advises that all landlords should meet with the prospective tenant, view the property together, discuss the tenancy agreement in detail and explain how and when the rent should be paid."

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