A major UK independent real estate consultancies states that the supply of rental housing is at last starting to increase.

It says mortgage rates along with house prices’ are beginning to ‘feel the pinch’ is making more and more owners consider their options, one of which is to let out their property.

During the first three weeks in January the agency states its data shows that in London alone there was a 10 per cent increase in the supply of rental housing instructions compared to the same period a year ago.

As more properties become available so will numbers of tenants looking at moving rather than extending tenancies which will further increase supply.

Average rental values in prime areas of London have now increased by 24 per cent since pre-Covid levels and in outer London has risen by 22 per cent, which some tenants have had to face and some moving elsewhere.

However in spite of supply growth, demand is higher than ever as in the last three months of 2022 it was 30 per cent higher than the five year average.

The organisation is confident that although rents are rising the increased supply should sometime soon put a hold on the rate of increase without causing a fall.

A spokesperson, says: “We are not overrun with new supply, but a change is clearly on the way.
“We are at the stage when tenants are doing more viewings and starting to shop around. Six months ago, the norm was a single viewing followed by quick decision about whether to take the property.”

In January the average gross yields throughout London rose by 3.8 per cent because of fast rising rents and slower price rises.

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