Charnwood’s rental sector is witnessing a dramatic surge in demand, leaving prospective tenants facing fierce competition and landlords presented with some challenging decisions.

The average number of requests to view each home has more than tripled since 2019, creating fierce competition. Properties are usually let on the first block viewing, and as a result, pressure on both tenants and landlords has escalated. Landlords find themselves in the challenging position of selecting the most suitable applicant from a pool of keen candidates, which is not a nice thing to do.

Rising mortgage rates have emerged as a primary force behind the surge in rental demand. As homeownership becomes increasingly challenging, aspiring buyers turn to the rental market, causing an increase in demand. Landlords often face the same significant mortgage rate hikes and are forced to respond, reinforcing the effect. Figures show that advertised rent in Charnwood is rising at the fastest annual rate since comparable records began, reaching an average of £906 PCM. Despite these record asking prices, prospective renters still often offer more than the asking rent. We forecast that rent increases will likely persist until either an equilibrium is reached or mortgage rates significantly drop.

In short, Charnwood’s rental market is experiencing an unprecedented boom as rising mortgage rates push more people towards renting rather than buying. The surge in demand has caused intense competition among prospective tenants. On the other side of the equation, landlords face tough decisions due to the same rising costs and the large number of applicants. This trend has contributed to significant increases in rental prices, making the prospect of renting a home increasingly challenging for many. Something that is unlikely to change until interest rates do.