First signs of industry consolidating ahead of the tenant fees ban

by Property 118

10:26 AM, 25th April 2019
About A year ago

First signs of industry consolidating ahead of the tenant fees ban

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First signs of industry consolidating ahead of the tenant fees ban

ARLA Propertymark is today issuing its March Private Rented Sector.  David Cox, ARLA Propertymark Chief Executive, said: “Whilst its really positive that the number of properties available per branch hit a record high last month, this may be the first signs of the industry consolidating ahead of the tenant fees ban as agents either sell-up or merge. This, coupled with landlords exiting the market and rent costs continuing to rise, means the overall picture is far from positive for renters.

“The full effects of the tenant fees ban have not yet been felt, and now the Government is introducing yet more new legislation which will deter new landlords from entering the market, such as abolishing Section 21. Until we have greater clarity on the changes planned, this news will only increase pressure on the sector and discourage new landlords from investing, meaning rents will only continue to rise for tenants.”

Landlords selling their buy-to-let

  • In March, the number of landlords exiting the market remained at four per branch. This is up from three last year.

Supply of rental stock and demand from tenants

  • The supply of properties available to rent rose to 203 per member branch in March, from 197 in February – the highest since records began in 2015.
  • Year-on-year, supply is up 13 per cent, compared to 179 per branch in March 2018.
  • Demand from prospective tenants also increased, with the number of house hunters registered per branch rising to 67 on average, compared to 65 in February.

Rent prices

  • The number of tenants experiencing rent rises fell marginally in March, with 30 per cent of agents witnessing landlords increasing them, compared to 34 per cent in February.
  • Year-on-year, this figure is up 30 per cent, from 23 per cent in March 2018 [Figure 1].

 


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Comments

Freda Blogs

21:10 PM, 25th April 2019
About A year ago

Interesting stats bringing evidence of what we already anticipated would happen following this legislation: fewer properties available and rising tenant demand.

However this can only be a part of the picture, as ARLA is presumably collecting data only from its members' branches, and not from non-member agents nor Landlords who do not use agents - so there could be significantly more properties being lost to the PRS which are not being recorded anywhere.

Gromit

10:39 AM, 26th April 2019
About A year ago

Reply to the comment left by Freda Blogs at 25/04/2019 - 21:10
Could also be Landlords removing properties from agents to self manage.


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