The number of homes available to let has halved but the cost of renting is rising, property experts have warned.
Agents have an average of just 15 vacant rentals on their books, a survey of more than 4,000 branches by Propertymark has revealed.
It comes as industry experts have said average rents are rising and demand for homes is outstripping supply.
The Royal Institution of Chartered Surveyors (Rics) last month said the number of properties available to rent was edging down as demand from renters increased.
Rics said 63% of property professionals expect rents to rise in the next three months, the highest proportion since records began in 1999.
The bleak forecast comes as property website Rightmove has said monthly rents are already climbing.
The average monthly rent being advertised — excluding London — was a record £1,088 in the first quarter of 2022, up by 11% annually.
In the capital, average asking rents have shot up by 14% annually to £2,195 per calendar month.
There are also more than triple the number of tenants inquiring as there are rental properties available, making the market highly competitive, according to the website.
The lack of stock stems from longer tenancies, coupled with demand from people who had previously put plans temporarily on hold due to the coronavirus pandemic, it suggested.
Nathan Emerson, from Propertymark, said the figures ‘present a worrying picture for private renters’
‘The number of properties available to rent has been diminishing with a large portion of landlords choosing to sell their properties,’ he said.
‘A lack of property is the root cause of rent increases and rising figures on social housing lists.
‘The most common reasons for landlords to choose to sell and no longer provide homes are around risk, finances and viability.’
More than half of rental properties sold in March were not let out again by the buyer, Propertymark also found.
Get in touch with our news team by emailing us at webnews@metro.co.uk.
For more stories like this, check our news page.
Sign Up for News Updates
Get your need-to-knowlatest news, feel-good stories, analysis and more
FAQs
The largest owner of apartments in the United States was Greystar, an international developer and manager headquartered in Charleston, SC. In 2024, Greystar owned nearly 109,000 units.
Do landlords provide any value? ›
The main service/value a landlord provides is converting a massive down payment into a monthly payment and providing credibility to the bank. Maintenance is largely ancillary.
What is the RealPage controversy? ›
The State's lawsuit alleges RealPage's revenue management software works by compiling competitively sensitive data on pricing and occupancy from competitors in the market for multifamily apartment leases and then directing the competitors who have entered the conspiracy on which units to rent and at what price.
Why is renting an apartment usually cheaper than buying a house responses? ›
Expert-Verified Answer
In reality, renting is often cheaper than buying a house due to several factors such as property taxes, maintenance costs, and insurance. Homeowners are responsible for property taxes, which can be a significant expense, while renters are generally not burdened with this cost.
What percent of Americans pay rent? ›
Homeowners vs. Renters By State
| State | Total Households | % Owning : % Renting‡ |
|---|
| Alaska | 252,199 | 65% : 35% |
| Arizona | 2,670,441 | 65% : 35% |
| Arkansas | 1,163,647 | 66% : 35% |
| California | 13,157,873 | 55% : 45% |
48 more rowsOf the 132 million occupied housing units:
66% (87 million) are occupied by owners (single-family houses, condos, co-ops, townhouses) 34% (45 million) are owned by landlords and occupied by renters.
What adds the most value to a rental? ›
7 Rental Property Upgrades That Add Value
- Kitchen Renovations.
- Bathroom Remodel.
- New Flooring.
- Overall Painting.
- Energy-Efficient Features.
- Updated Curb Appeal.
- Security Enhancements.
Also known as GRM, the gross rent multiplier approach is one of the simplest ways to determine the fair market value of a property. To calculate GRM, simply divide the current property market value or purchase price by the gross annual rental income: Gross Rent Multiplier = Property Price or Value / Gross Rental Income.
Is being a landlord a good source of income? ›
Rental income can cover almost all costs associated with renting out properties. Good retirement income. Real estate investments can be very lucrative and successful during your golden years. Though being a landlord is difficult, it is a great way to provide for your retirement years.
Is rent to own fake? ›
And while many rent-to-own homes are legit, scammers are known to post bogus listings, too. In short: Rent-to-own is a legitimate way to buy a house — but it usually isn't your only option. If you're considering this route, here's how to feel confident before you sign.
One example of this is RealPage, a corporation that creates software programs for property management and real estate. Real Page is currently owned by Thoma Bravo, a Chicago-based real estate investment firm that currently maintains over $130 billion in assets.
What is the antitrust lawsuit against RealPage? ›
A group of tenants at the tower is involved in a sprawling class-action lawsuit against RealPage and 34 co-defendant landlords. The U.S. Department of Justice filed a statement of interest in the case in December 2023, arguing that the complaints adequately allege violations of the Sherman Antitrust Act.
Why buying is still better than renting? ›
As the property value increases, you build equity, which can be a valuable financial resource for the future. Stable Housing Costs: Unlike renting, where landlords can increase rent prices annually, owning a home provides stability in housing costs.
Is owning less expensive than renting? ›
Owners come out ahead of In at least seven major cities in California, long-term renting is cheaper than owning a home. Renters save $900,540 on average in California over a 30-year period. in at least 51 U.S. cities. On average, owners saved $175,811 over a 30-year period.
Does buying a home have fewer costs than renting? ›
The overall cost of homeownership tends to be higher than renting even if your mortgage payment is lower than the rent. Here are some expenses you'll be spending money on as a homeowner that you generally do not have to pay as a renter: Property taxes. Trash pickup (some landlords require renters to pay this)
Who is the largest multifamily owner in the US? ›
For the fourth consecutive year, the top multifamily property owner was Greystar. In August, the company's 183,074 units were valued at approximately $50 billion. The firm's portfolio consists of market-rate, affordable, student and senior rentals in markets across the U.S. and abroad.
Who has the highest rent in the United States? ›
The U.S. state with the highest average monthly rent: Hawaii
Hawaii ranked as the state with the highest average rent, according to doxo. In a separate 2023 doxo report, Hawaii was also determined to be the most expensive U.S. state based on the average cost of household bills.
Who owns the most single family homes in America? ›
Invitation Homes is the largest single owner of single-family rental homes in the United States, managing more than 80,000 homes as of 2021.
What is the largest rental company in the United States? ›
United Rentals, Inc (NYSE: URI) is an American publicly traded company; it is the world's largest equipment rental company, with about 16 percent of the North American market share as of 2022.
