Assignees risk losing out as housing shortage bites

23-09-2010

An acute shortage of rental accommodation across the UK has seen prospective tenants battling for the best properties, with some assignees missing out on their first choice.

The scarcity of homes for rent is due to a number of factors. Few banks are currently prepared to offer owner-occupier mortgages and, when they do, demand large deposits. This, coupled with fears of a double-dip in housing has seen tenants flood the market – a reported 16% increase since January. Current estimates suggest that there are an average 5.5 tenants vying for each property.

The Sterling home search team encourages assignees to submit offers quickly, says Relocation Manager Natalie Leask, to avoid them missing out.

She adds: “We manage our assignees’ expectations from the beginning by explaining that the market is very tight at the moment, leaving little room for negotiation on price.”

“We always explain on the briefing call that negotiating rental prices down considerably can mean they lose the property. Landlords often have two or three other offers on the table, and can usually find tenants who will pay the asking price.”

We are not currently seeing significant increases in rents as a result of the housing shortage. But this may change if the situation continues.

We will continue to advise clients and assignees where market fluctuations are likely to affect them.  

If you have any questions about the issues raised here please contact intercom@sterlingrelocation.com