Rent costs start to indicate upward trend

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ARLA Propertymark issues May PRS Report

ARLA Propertymark (Association of Residential Letting Agents) is today issuing its May Private Rented Sector (PRS) Report.                                                                                              

Rent prices

• More than a quarter (27 per cent) of agents saw rent costs rise for tenants in May – the highest level since July 2016 when 28 per cent saw rents increase
• For the second month running, only 2.8 per cent of tenants successfully negotiated a rent reduction – this figure rose to 3.6 per cent in March from 2.2 per cent in February

Rental stock

• Over the last 12 months, the supply of rental stock has risen by 11 per cent. In May 2016, letting agents managed 171 properties on average per branch whereas in May this year they managed 189

Landlords selling their buy-to-let

• The number of landlords selling up fell in May – in April agents reported four sales per branch, but this figure dropped to three in May

Demand from tenants

• In May, ARLA Propertymark members had 65 prospective tenants registered per branch

David Cox, ARLA Propertymark Chief Executive, said: “Private rents rose by 1.8 per cent in the 12 months to May 20173, and the last thing tenants need is for them to get even higher. With the new government confirming a Tenants’ Fee Bill in last week’s Queen’s Speech, we can expect them to rise by up to £103 a year, hitting loyal tenants looking for long-term agreements hardest. This is on top of any natural organic rent growth as well. The only thing which could offset this would be to significantly increase rental stock, but until this happens and supply and demand meet in the middle, rents will only become more and more unaffordable.”

 

 

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