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The number of new prospective tenants has reached its highest level seen in 2018 so far.
ARLA Propertymark’s July Private Rental Sector report has found that the number of new prospective tenants registered per letting agent rose from 71 in June to 79 per cent in July. This is the highest level seen in 2018 so far.
This figure has not been so high since September 2017. During this month there were also 79 per branch.
The report also found that year on year, demand is up 13 per cent. There were just 70 prospective tenants registered per letting agent in July 2017.
A decline in rental property supply was also noted in July, falling from 191 in June to just 184 in July. Year on year, this figure has fallen four per cent from 192 in July 2017.
The report also focused on rent increases. Many landlords have been forced to offset costs from growing regulation onto tenants. In June, the number of tenants who saw their rent increase grew to 35 per cent. However, this declined slightly n July to 31 per cent. Year on year, this figure has not seen much fluctuation, remaining at 31 per cent in July 2017 as well.
ARLA Propertymark Chief Executive, David Cox, said: ‘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. 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.’
He continued: ‘Almost a third saw their rents rise last month, and although this figure was down from June, it’s still far too high. To put tenants back in the driving seat, we need more homes available to rent, and the only way this will be achieved is if the Government makes the market more attractive for buy to let investors.’