The UK’s rental demand has increased by 23 per cent in the last year, according to a new Rightmove research.
The analysis has revealed that the increase in the UK’s rental demand is also due to many first-time buyers having to put their dreams on hold until mortgage rates go down, the Guardian first reported.
Following two months marked by political and economic turbulence, two-year fixed mortgage rates have dropped to 6.12 per cent, down from the 6.65 per cent of late October.
Five-year rates slumped below 6 per cent for the first time since the mini-budget.
Nevertheless, rates will remain higher than in previous years, hitting first-time buyers the hardest.
“The number of aspiring first-time buyers who have now had to turn to the rental market is exacerbating the situation further,” said Rightmove property expert Christian Balshen.
“We’re seeing some more properties coming to market, but nowhere enough to meet demand.”
Increased demand has in turn led to higher rents, especially in London.
According to research from Foxtons, over the last nine months rents have gone up 22 per cent – hitting the record of £571 a week.