The current extreme shortage of homes means landlords have more power over who they rent to. “Competition is very, very fierce. The last property we rented out had 10 good offers. I can pick and choose,” said Mr Townshend.
In the wake of pandemic void periods, rent holidays and lost income, an increasing number of landlords are now getting rent insurance, Mr Richmond added. In turn, this has also contributed to a rise in requests for rent guarantors as this is often a requirement set by the insurers.
A desire for more space in the wake of lockdown and the shift to working from home also means tenants are stretching their budgets further to find larger properties, which again affects their rent-to-earnings ratio, said Mr Richmond.
Meanwhile, supply is in decline as landlords exit the market in the wake of punitive tax changes, and ahead of plans for costly requirements to upgrade the Energy Performance Certificate ratings on rental properties.
Others, particularly in holiday home hotspots in the South West, have taken their properties out of the long-term lettings market to cash in on the “staycation” boom.
Dan Wilson Craw, of Generation Rent, a campaign group, said: “One of the problems is that landlords have moved so many rental homes into the holiday let market.”