Rental cost and increases at record levels

Rental cost and increases at record levels

14:40 PM, 27th September 2018, About 6 years ago 11

Text Size

In August, the number of tenants experiencing rent hikes increased to 40%, from 31% in July. This is the highest figure recorded since records began in January 2015 and the highest level every in August.

Year on year, this figure has increased from 35% in August 2017 and 27% in August 2016.

ARLA Propertymark is today issuing its August Private Rented Sector (PRS) Report.1

David Cox, ARLA Propertymark Chief Executive, said: “As we’ve highlighted before, the impact of recent and ongoing tax changes continues to have a material impact on the buy-to-let market. Four in ten tenants saw their rents rise in August – the highest level we’ve seen since records began. Although it’s encouraging to see the number of properties available to rent rising, supply still isn’t anywhere near high enough to slow down the pace of rent rises. We need more homes to rent, and for Government to change its narrative and recognise the very valid role buy-to-let plays in the housing mix. Driving small landlords out of the market ultimately impacts tenants most.”

Demand from tenants

  • Demand from prospective tenants fell significantly, with the number of house-hunters registered per branch dropping by 19% in August to 64 on average, compared to 79 in July.
  • Year on year, demand is down 11% as there were 72 prospective tenants registered per letting agent branch in August 2017.

Supply of rental stock

  • The supply of available properties rose to 197 in August, from 184 last month.
  • This is the highest figure seen since December 2017, when supply stood at 200.
  • Year on year, this figure is up four per cent from 189 in August 2017.

1 Opinium Research carried out an online survey among 191 ARLA members from 29th August – 13th September 2018. 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 Based on new option ranges, so comparisons beyond April 2017 unavailable


Share This Article


Comments

Monty Bodkin

10:31 AM, 30th September 2018, About 6 years ago

Reply to the comment left by Alan R at 29/09/2018 - 18:55
I don't think you can draw any firm conclusions from that Alan.

Price reductions are a common marketing ploy.
As is leaving properties advertised when they are no longer available (seems daft to me as it indicates the letting agent is useless at their job but just pointing out it goes on).

A truer reflection is how the market compares to the same time 2 years ago, 5 years ago etc.

Leave Comments

In order to post comments you will need to Sign In or Sign Up for a FREE Membership

or

Don't have an account? Sign Up

Landlord Tax Planning Book Now