There was a record number (48,332) of new tenants registering for rental accommodation in the first quarter of 2010, according to Countrywide.

Registrations increased by +48% in Q1 2010 over Q4 2009 and rose +36% compared to Q1 2009, giving the highest number of new tenant registrations since Countrywide started keeping records.

John Hards, co-managing director at Countrywide Residential Lettings, said: “Demand for rental properties has rocketed over the last few months and the shortage of properties is pushing up demand across the country as house hunters continue to struggle to get on the property ladder. I suspect this will continue while people wait to see how the impending election affects the property market.

“Buy-to-let landlords are using this as an opportunity to increase their property portfolios as rental yields improve in key locations, which is helping with the severe shortage of supply in many locations.”

There was an average of 4.9 tenants vying for every property compared to 2.9 tenants in January 2010. The south east has the biggest shortage of rental properties with 6.8 tenants vying for each property, with two-bedroom properties most in demand. In the south west a severe lack of supply of two bedrooms has pushed up demand with 10.5 tenants after each property.

Family homes are the most sought after in the East Midlands with 38% of prospective tenants looking for 3 bedroom properties, an increase of +16.5% since January 2010. In the West Midlands over 35 percent of prospective tenants were looking for three bedroom properties, an increase of +9% since Q4 2009. Three bedroom properties are most in demand in the North West with an average of 3.6 tenants vying for each property.

These issues have resulted in the property register of letting agents falling as demand outstrips supply. A property is now only on an agent’s book for an average of 17 days, a decrease of three days since Q4 2009. Rising demand and the lack of supply has led to an increase in rental prices with the UK average monthly rate up +2.5% to £683pcm.