Prospective tenants struggle as reference failures rise amid Labour government concerns
Propertymark members report many prospective tenants are failing reference checks as many are worried about a Labour government.
The latest figures from Propertymark’s Housing Insight Report reveal tenant demand has increased as rent prices fluctuate.
According to the survey, rent arrears increased slightly in May 2024 at just under 3%.
Demand for renting is high
Letting agents Devon Rose says they are seeing a shift in tenant inquiries.
Nick Spayne co-owner of Devon Rose said to Propertymark: “We are not receiving any enquiries from people on Housing Benefits, probably because the prices are too high.
“Although demand for renting is high, we are experiencing a high failure rate i.e. prospective tenants failing their referencing (CCJs, IVAs etc not being declared). This extends the time to occupy, upsets landlords and increases our workload.”
Rents continue to fluctuate by market and region. Propertymark members reported seeing rents remain static (47%) or increase (34%) in May 2024.
However, there was an increase in the number of members reporting a rent fall (18% in May 2024 vs 12% in April 2024)
Tenant demand remains strong
Nathan Emerson, chief executive officer of Propertymark, says tenant demand remains strong.
He said: “Tenant demand continues to increase. While stock levels have improved, there were around 9 applicants registered for each available property in May.
“Although most members report that rents continue to rise or have remained static, there is some good news for prospective tenants with an increase in the number of members reporting rents falling.”
None of the main parties seem interested in private landlords
Many Propertymark members are concerned about the Labour government’s potential policies impacting the rental market.
One letting agent in the East Midlands told Propertymark: “I think they will try and tax out the private landlords from the market making rents rise due to supply and demand. In the East Midlands, we have already seen a reduction in landlords due to mortgage rates and tax.
“We need to support the private sector, not attack it. The problem is the Conservatives also attacked our industry by making landlords pay for applications and credit checks. So, none of the main parties seem interested in private landlords.”
Supply and demand issue
Mr Emerson says the next government must tackle the supply and demand issue.
He said: “While both sectors remain resilient, there is much that the next government can do to support buyers, renters such as improving the home buying/renting process and professionalisation of the sector via the regulation of agents.
“More broadly there is a need for a review of property taxes to make changes which stimulate supply and demand.”
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Member Since April 2024 - Comments: 94
2:46 PM, 8th July 2024, About 2 years ago
It seems like many are struggling to pass checks due to issues like CCJs and IVAs not being disclosed.
Propertymark’s latest report shows rent demand is high, but agents are dealing with increased workload and upset landlords because of these reference failures. Rent prices are also fluctuating, with some areas seeing rents rise while others fall.
It’s clear there’s anxiety among landlords about Labour’s policies possibly impacting the rental market negatively. Some feel Labour might push policies that could drive landlords out of the market, affecting supply and pushing rents up even more due to reduced availability.
Nathan Emerson from Propertymark emphasizes the need for the next government to address supply and demand issues and improve the home buying/renting process. It’s a complex situation, balancing market needs with policy impacts.
Seems like there’s a lot to unpack here regarding the future of the rental market.
Member Since December 2023 - Comments: 1590
4:37 PM, 8th July 2024, About 2 years ago
When you say ‘None of the main parties seem interested in private landlords’, it means that ‘None of the main parties are interested in private tenants’ either.