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Latest ARLA figures show little change in rent, supply and demand
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Original Source: Letting Agent Today.
Original Author: Graham Norwood.
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The number of letting agents who saw landlords increasing rent costs for tenants remained at 31 per cent in July – no change on the previous month but up from 27 per cent in May.
A year ago, in July 2016, only 28 per cent of agents saw rents increase.
Meanwhile the number of properties managed per member branch increased marginally in July to 192 – up from 190 in June. This is the highest level since January, when agents managed 193 on average.
Year on year this figure has increased by four per cent; in July last year, letting agents managed 184 properties on average.
Demand from prospective new tenants increased to 70 in July, from 61 in June.
“Landlords really are stuck between a rock and a hard place. All the tax increases they’ve incurred over the last 18 months have meant they either need to sell their properties and exit the market, or increase rent payments to plug the deficit. Neither benefits tenants; if they exit the market, supply is even more strained and matched with growing demand, rent prices will increase anyway” explains David Cox, ARLA Propertymark chief executive.
“Government may claim they are helping tenants but the unintended consequences of their actions on the private rental sector are now really being felt by tenants in terms of lack of homes to choose from and the feeling of being constantly priced out of the market. This needs to change” he adds.
