More people are looking to rent properties rather than buy them amid financial turbulence, according to new research.
Rightmove has said the number of people enquiring about rental homes has jumped by 23% compared to this time last year.
Demand is outstripping supply in the market, creating fierce competition among potential tenants. Letting agents told Rightmove they are managing 36 enquiries per property.
Christian Balshen, Rightmove’s rental expert, said: "It’s extremely frustrating for so many people in the rental market right now, with demand so high."
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He added: "Tenants are trying to secure viewings for properties as soon as they hit Rightmove, and the stock shortage means that agents are dealing with an unmanageable number of enquiries.
"The number of aspiring first-time buyers who have now had to turn to the rental market is exacerbating the situation further. We’re seeing some more properties coming to market, but nowhere enough to meet demand."
Rebecca Koncienzcy said she and her husband "finally had enough for a deposit for homes on the much cheaper end of the market" after "years of saving".
She added: "The competition for homes was brutal and they were being snapped up by people who could afford to buy well over the asking prices. Thankfully we are just waiting for our new home to be finalised, but we got our mortgage deal, which we locked in for five years at 3.9%, just before the interest rates went up.
"If we'd waited any longer there is no way we could have afforded the current interest rates and would have definitely considered waiting it out until the rates fell. But this has also had a knock on effect with rental prices, our landlord is already considering putting our rent up from £675 to £725 in Wallasey, so I feel like many are caught in some very difficult situations - who can afford to save for a deposit when rents are so high?"
Earlier this week, the ECHO reported that rents outside of London jumped by 3% in the three months to September 2022. The average monthly outlay is now £1,162, a new record.
Rightmove also found that four out of ten first time buyers have a deposit saved, but are waiting it out to see if mortgage rates go down. Prices spiked earlier in autumn following a disastrous mini-Budget by former Chancellor Kwasi Kwarteng. Rates are starting to stabilise following Jeremy Hunt's Autumn Statement, albeit slowly.
Tim Bannister, Rightmove’s property expert, added: "It’s completely understandable why some buyers, particularly some first-time buyers, are waiting for some more financial certainty.
"Now that there are signs that mortgage rates are settling down, the indicators are that they will stabilise at a higher level than previous buyers had been used to.
"If someone has their deposit saved and is ready to move, they may find that right now presents a better opportunity than a few weeks ago, particularly with more choice coming onto the market and some sellers pricing more competitively in the lead up to Christmas."
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