Tenants struggle as demand for rental properties soars

Demand for rental properties across the country is continuing to rise and tenants are the ones who will bear the brunt of the tightening market, according to Trade Me's head of rentals.

The website has seen a 20 percent increase in the number of enquiries on rentals throughout June. 

The increased demand has led to even higher rent prices.

"With such high demand, rents have increased in many regions across New Zealand," said Trade Me's head of rentals, Aaron Clancy in a statement on Monday. 

"If demand continues like this we expect to see a lot more record rents over the coming months," he continued.

The average rent price has remained at an all-time high of $500 per week for the third consecutive month.

"We're seeing an increasing interest for rentals but stock simply isn't keeping up with the number of properties available for rent," said Clancy. 

The number of properties available for rent is down 7 percent from June last year.

Clancy says rising prices mean tenants are staying longer in properties to avoid searching for a new one in the tightening marker.

"Unfortunately for anyone looking for rental property this is a perfect storm and as a result we're seeing record rents, increased competition for properties and less stock," he said.

Bay of Plenty is experiencing the largest jump in demand with enquiries up a "staggering" 47 percent from last year. 

Southland has increased by 45 percent and Manawatu and Whanganui are up 33 percent.