Landlords continue to exit and tenants continue to feel the burnMake Text Bigger
ARLA Propertymark is today issuing its February Private Rented Sector (PRS) Report and David Cox, Chief Executive, said:
“According to data from the Office for National Statistics4, private rent costs rose by one per cent in the year to February, and our data shows that the number of tenants successfully negotiating rent reductions fell. We warned this would happen, as landlords continue exiting the market and increasing legislation deters new ones from entering. The Chancellor’s Spring Statement included a number of initiatives aimed at growing housing stock for buyers, but it didn’t offer any solutions to increase the supply of properties in the private rented sector. Unless the Government commits to making the prospect of investing in the PRS more attractive, and introduces measures to increase supply, tenants will only continue to feel the burn.”
- The number of tenants experiencing rent rises increased in February, with 34 per cent of agents witnessing landlords increasing them, compared to 26 per cent in January
- This is the highest figure recorded since August, when 40 per cent of tenants had their rents increased, the highest on record
- Year-on-year, this figure is up 14 percentage points, from 20 per cent in February 2018 [Figure 1]
- In line with this, the number of tenants successfully negotiating rent reductions fell to 2.3 per cent, from 2.5 per cent in January.
Landlords selling their buy-to-let
- In February, the number of landlords exiting the market rose to four per branch, after falling to three in January
- This is up from three last February.
Demand from tenants and supply of rental stock
- Demand from prospective tenants fell in February, with the number of house-hunters registered per branch falling to 65 on average3, compared to 73 in January
- The number of properties managed per branch remained at 197 in February, with no new properties coming onto the market.
1 Opinium Research carried out an online survey among 295 ARLA Propertymark members from 4th March to 18th March 2019. ARLA Propertymark Protected letting agents were surveyed on a number of key rental sector issues including supply and demand, the management of BTL properties, and monthly rent prices. www.opinium.co.uk
2 Records began in January 2015
3 Based on new option ranges, so comparisons beyond April 2017 unavailable
4 Office for National Statistics – Index of Private Housing Rental Prices, UK: February 2019
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