13 Home Hunters Queue for Every Property to Rent

The number of tenants seeking to rent a home rose in 2022, while the number of homes for rent has slowed to almost nothing.

Letting agents say their lists of renters waiting for a home have surged by 88 per cent, with each branch having a waiting list of an average of 147 home hunters in September, according to research by trade body ARLA Propertymark.

But while the property queues go out the door, the number of homes listed to let with agents averages 11 per branch.

Letting agents claim 13 newly registered renters are waiting for each home to let without adding the number of already registered tenants waiting.

Meanwhile, rents are still rising, says the Office for National Statistics (ONS).

Private rents climbed 3.6 per cent in the year to the end of September 2022, and 15.2 per cent since records started in January 2015.

Rents are growing the fastest in the East Midlands, where tenants pay 4.7 per cent more rent year-on-year, says the ONS. The slowest increase is in London (2.8 per cent).

What's happening to rents where you are

This is the latest rent data from the ONS:

Source: ONS

In financial terms, the average UK rent is £1,159 a month, an increase of 9.2 per cent since last year, research by tenant referencing firm Homelet shows.

The firm says every UK region has seen rent growth.

London rents are even higher than the national average - at £1,945 a month. Excluding the capital from the listings, the average rent is £961 a month, a rise of 7.7 per cent. Outside London, the lowest rents are in the Northeast, where tenants pay an average of £609 per month.

Source: Homelet

Andy Halstead, the Homelet CEO, said: “The rising cost of living is likely to see more tenants unable to afford their rent payments, and spiralling mortgage rates are making things harder for landlords. Several factors are combining to result in more and more landlords leaving the market, sadly depleting an already inadequate supply of rental properties to meet tenants’ demand. This will only result in further increases in the average rent price at a time when tenants can ill afford to take on extra expenses, and landlords can ill afford to miss out on rent payments.”

Guild of Landlords Rent Digest – FAQ

For landlords confused by the stats and what they mean, here are answers to the most-asked questions about rents.

Why do the rent indices show different results?

Check the data carefully. Other indices cover different periods, and the samples vary between reports.

The ONS has the most extensive sample, so the most reliable figures should return, but the time to collect and analyse the statistics often means the ONS data lags behind the rest of the sector.

ARLA derives insights from letting agents and provides what's known in the trade as a sentiment survey rather than factual data.

Homelet statistics come from customer data, which may not fully reflect the market.

Should landlords raise rents in line with the stats?

That's a business decision for landlords. The rent statistics indicate how the market moves but do not reflect demand from tenants and property standards in local neighbourhoods.

Don't forget that the data is historical, showing what's happened rather than what will happen.

Which rent index is the best?

That's up to individual landlords. For instance, one index with a solid customer base in the same area as a landlord's portfolio may align more closely with market rents for that neighbourhood.

Average data is not good if you don't have an average home, and median rents will cover everything from a room in a shared house to a four-bedroom home.

Extra research with local letting agents is likely to indicate better where a landlord should pitch a competitive rent and stop them from underselling.

How has coronavirus disrupted the statistics?

Although several letting agents and property organisations publish regular rent statistics, many have been affected by the coronavirus lockdown that has their reports suspended or delayed.