Supply of rental property fell by seven per cent from April, with just 179 properties managed per ARLA branch in May; the lowest level recorded this year.
The report found that worryingly, London – known for its booming rental culture – has the least amount of rental properties per branch, with only 134 managed in May, compared to 273 properties per branch in Scotland.
Whilst overall available rental properties decreased, demand remained the same. ARLA members reported 36 potential tenants registered per branch in May, remaining the same as the previous two months.
Bad news for tenants, as rents continue to rise
During May, a third (34%) of ARLA agents reported rent increases for tenants. This figure has been slowly creeping up from the start of the year, when just 27% of agents reported hikes for tenants.
Those living in the South West were the most affected by monthly rent increases – with just under half (49%) of agents reporting an increase – and it’s set to get worse. Three quarters (76%) of ARLA member agents nationally, predict that rents will continue to rise over the next five years, meaning tenants already struggling to meet payments will struggle further as time goes on.
David Cox, managing director of Association of Residential Letting Agents (ARLA) comments on this month’s findings: “It is worrying to see that there such a sharp decrease in supply, when we know there is already a struggle to meet housing needs. The months following any major event such as the General Election will always cause uncertainty and shake things up for the property market, but one thing is for sure – the dwindling supply and already-high demand is an issue that’s going to continue to plague the property market.
“We are in desperate need of more housing stock in this country and supply and demand isn’t something that will level out overnight. It’s vital that the new government follows their promise of building more houses, so we can free up rental properties and head on the right path to turning the property market around once and for all.”
