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Property rent costs remained high for tenants in the private rented sector in September as rents continued to rise.
The latest September Private Rented Sector (PRS) Report from ARLA Propertymark shows that the number of tenants experiencing rent rises decreased in September but remained high overall, with 58 per cent of agents witnessing an increase in rent prices.
Annually this figure is up from 31 per cent in September 2018, and 27 per cent in September 2017, resulting in higher property rent costs in the sector.
Despite higher rent costs bringing benefits to landlords in the sector, the number of properties managed per branch fell to 193 in September, from 197 in August.
Annually the supply of available properties per branch is down from 194 in September 2018, but up from 189 in September 2017.
Higher rent costs may also be putting off prospective tenants as well, as demand from prospective tenants also dropped, with the number of property hunters registered per branch falling to 72 on average, compared to 76 in August.
The number of landlords exiting the market remained at four per branch in September, despite the continuous rise in rent costs offering better yields for buy to let property investors.
David Cox, ARLA Propertymark Chief Executive, said: ‘While the number of tenants experiencing an increase in rent has dropped marginally, rent prices remain alarmingly high as they have done since the Tenant Fees Act came into effect. It’s also concerning to see that the number of properties managed per letting agent branch has fallen. As supply falls, competition amongst tenants increases which further drives up rent costs.
With the possibility of a general election approaching, we hope that the Government recognises the importance of increasing supply for tenants and uses it as an opportunity to make the market more attractive for landlords.’