Rightmove confirms widening lettings gap

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01st June 2011

Rightmove confirms widening lettings gap

Rightmove has published more findings to coincide with our experience in the Stirling area of the disparity between supply and demand for rented properties.

According to the most recent survey, there has been an staggering increase in the number of tenant searches conducted last month, a rise of 64%, while supply of rented properties advertised on the website plummeted by 23%.

Tenants consequently believe that rents will soar, with 49% of those polled for the portal’s latest Consumer Confidence Survey between April 4 and April 18 expecting higher rents within 12 months and 15% anticipating rents to increase by more than 10%. However, the majority (37%) of tenants expect rents to remain about the same.

Miles Shipside, commercial director for the portal, says: “Tenant competition in many locations is hot, partly as many tenants are staying in their current rented accommodation for longer, whilst less new stock becomes available.

“We see some new supply relief on the horizon in locations where capital values are low and rental yields are compelling enough to entice new landlords who are able to secure the necessary finance. However, this new supply to the market takes time to come through and is likely to be insufficient to meet demand.”

Some 51.3% of tenants wish to buy but can’t currently afford to, but this compares to 58.4% at the start of the year. Just 13.6% claimed to have no desire in buying.

So our advice to landlords in Stirling is to buy more properties as yields are set to go up, that’s if you have the capital to do, but before you go out and start looking for potential properties to purchase consult a reputable letting agent that knows the area and will direct you to where demand is highest.