Rent prices reach highest on record
Rent prices have reached their highest on record according to ARLA Propertymark’s latest PRS report.
The number of tenants experiencing rent rises increased to the highest figure on record in May, with almost half (45%) of agents witnessing landlords increasing them.
During May the number of tenants negotiating rent reductions fell from 1.9% in April to 1.6%, which is the lowest figure since January 2016.
David Cox, chief executive at ARLA Propertymark, said: “As predicted, last month’s findings have shown an increase in rent prices in advance of the Tenant Fees Act coming into force.
“This rise in the number of tenants experiencing rent hikes is the highest we’ve ever had recorded, and rents will likely continue to rise as they must now cover the agent’s legitimate costs for setting up a tenancy.”
Letting agents saw a slight decrease in the number of landlords selling their buy-to-let properties, with the number of landlords exiting the market fell from five per branch in April to four in May.
The report found that the number of available rental properties dropped marginally to 201 per member branch, compared with a rise in demand from prospective tenants to 69 on average per branch which is a year-on-year increase of 15%.
Cox added: “Competition for properties will be increasing as the supply of properties available to rent falls, but the demand from prospective tenants grows.
“This ultimately pushes up rent prices on well-managed properties and leaves tenants feeling the pinch.”