Good news - rental demand at its highest since last September
In what seems to be increasingly rare good news for the private rental sector, ARLA says demand from new tenants has reached its highest level this year.
The number of new prospective tenants registered per letting agent branch increased from 71 in June to 79 in July – the latest data available.
Demand hasn’t been this high since September 2017, when there were also 79 per branch.
Year on year, demand is up 13 per cent as there were just 70 prospective tenants registered per letting agent in July 2017.
Meanwhile the supply of available properties moved in the opposite direction to demand, falling from 191 in June, to 184 last month
Year on year, this figure is down four per cent from 192 in July 2017.
In June, the number of tenants experiencing rent hikes increased to 35 per cent, but this dropped slightly in July, to 31 per cent. Year on year, this figure hasn’t changed, standing at 31 per cent in July 2017 as well.
“Buy to let investors are being pushed out of the market by increasing costs and continued regulatory change, and new landlords are being deterred from entering” claims David Cox, ARLA Propertymark chief executive.
“Last month, an average of four landlords took their properties off the market per branch, up from three this time last year – and as supply falls, competition among tenants increases, which pushes up rent costs. Almost a third saw their rents rise last month, and although this figure was down from June, it’s still far too high” he adds.