Lettings market “does not bode well for low income tenants”

Trends in the lettings market “do not bode well for renters on low incomes” according to an analyst.

Jack Godby of lettings platform Ocasa says: “Tenants are facing a very tough time at present, as not only is the cost of living crisis stretching their finances, but high demand for rental properties is also pushing the cost of renting ever higher.

“As such, tenants with tight incomes are losing out to those whose pockets are deeper but still not deep enough to entertain the idea of buying in today’s frantic sales market.

“It doesn’t bode well for renters on low incomes. A cost of living crisis, inflation rises, and recently-announced tax increases mean real income is set to shrink. 

“It used to be that home ownership was the driving aspiration that we looked towards. Today, however, we're getting dangerously close to a point where, for many people, simply renting a good home is a very tough task in itself.”

His comments come as his platform reveals that in Britain’s fastest-moving rental markets, up to 30 per cent of homes are snapped up by eager tenants within two weeks of being listed. 

Across Britain on average, 17 per cent of rental homes entering the market are being snapped up by tenants within two weeks of being listed - but some areas have a much more pronounced trend.

The East of England is home to the fastest moving regional market with 24 per cent of rental homes being grabbed within a fortnight; in London it’s 20 per cent and in the south west it’s 19 per cent. 

On a city level, the fastest-moving rental market is found in Bradford, West Yorkshire, where 30 per cent of properties are snapped up within two weeks of listing. 

In Glasgow it’s 26 per cent, in London it’s 20 per cent, and in Bristol 17 per cent.