London rents, already higher than the nation's average, remain stable at £1,395, up just 1% annually and down 2% on month - although London growth in the number of tenances was pronounced, with the number rising 17% annually. The number of new tenancies agreed across the UK shot up 15% annually as new tenants looked to secure rental property at the start of the year.
New tenants increase 6% annually and 10% in London as demand for rental property continues to rise - and, supporting this figure, BTL mortgage applications rocketed by 17% annually as the appetite for property investment remains strong.
Stephen Nation, Head of Lettings for Sequence, a 300 branch network which also includes Barnard Marcus, William H Brown, Fox & Sons and other leading brands, comments:
“The rental market across the country has started the year with renewed vigour and increasing levels of demand. We have seen a surge in the number of new tenancies this month, up 15% annually across the UK and 17% in London as tenants compete to secure their property at the start of the year.
“This high level of activity is due to the sheer volume of new tenants coming into the market - new tenant applications increased by 6% annually across the UK and 10% in London. Across the UK the supply is keeping up with demand, with new rental properties increasing by 6% annually, however, in London there is a shortfall, down -4% annually.
“The good news is that buy-to-let remains the investment of choice across the UK, with the number of new mortgage applications increasing by 17% annually. This news comes in spite of the retraction of Funding for Lending to the mortgage market and highlights just how strong this market is. The pipeline of new investors we are seeing will continue the flow of properties onto the market and appease the demand, which should in turn, keep rents stable.”
