Just 1.9% of the UK’s rentals are priced under £500 per month, making them more affordable rental homes, while tenant demand in this price range is the highest in the market, according to research from Zero Deposit.
The research analysed current rental market stock at each rental price band, looking at the proportion of homes available at each price threshold, as well as the demand for these homes based on the number of total homes that have already had a let agreed.
The sub-£500 bracket had by far the lowest level of stock of all rental market price bands, while more than three-quarters (76.2%) of the stock in this part of the market was already marked as let agreed.
Demand was lower for properties with asking rents of between £500 and £2,000 per month, while stock levels were also more robust.
Some 26.1% of the UK’s stock cost between £500 to £1,000 per month, while 53.0% of rentals were already snapped up, meaning around half of stock remained available.
Rents between £1,000 and £1,500 accounted for 22.1% of stock, while 52.4% of homes in this category had been snapped up.
At the more expensive range, (£1,500 to £2,000) supply was lower, at 16.1% of stock, while demand was slightly higher, with 57.9% already taken up.
Demand for rentals was especially strong at the top end of the market, for tenants able to spend £2,000-plus per month.
Three-quarters (75.2%) of these properties were already let, with this bracket accounting for 33.9% of all rentals.
Sam Reynolds, CEO of Zero Deposit, said: “Tenants searching for the most affordable rental properties are facing an insurmountable task, as there’s a real shortage of affordable stock and these properties are being snapped up quickly when they do reach the market.
“It’s this market segment that is being forced to heavily compromise on their next home while being under considerable financial pressure to fund the move.
“Of course, it still remains a challenge for those who are willing or able to spend more, but supply and demand are more equally weighted at the mid-range of the market.
“However, many tenants simply don’t have the luxury of splashing out more on the cost of renting as they are already struggling to secure even the most affordable rentals.”
