Results for the three months to the end of August released by the London-based property company Orchard & Shipman show a year on year increase in tenant demand of 45.5%.
Compared to the same three months last year, the number of tenants looking for property to rent soared from 439 to 639. This is seen as a clear illustration of the contra-cyclical nature of the housing market where rental demand increases whenever house prices slow.
Chris Shipman, chairman of O&S, says: “It seems clear that a lot of people have decided to put off buying for a while and are renting instead. If this trend continues it is likely to result in an increase in rental values.”
Orchard & Shipman believe that these figures have come just in time for many landlords, who were faced with the prospect of having to sell because they were unable to find a tenant. This applied particularly to those who had recently purchased properties on the back of bad advice from unscrupulous agents or developers who were promising higher rents that could reasonably be achieved.
Shipman adds: “Rental demand in the south has been hardening for a while now and with this dramatic increase in demand it would not be surprising to find that we have a shortage of rental property in the near future.”