"The fact that rent prices in London are bucking the national trend is a positive sign for both renters and prospective renters in the Capital"
According to the data released, rent increases have slowed in the Capital. Only 8% of agents based in London said rents went up in February, compared to the national average of 25 per cent. 25% of London-based agents saw rents decrease last month, compared to just one in ten nationally.
Supply of rental stock
Nationally, the number of properties letting agents managed per branch decreased by 5% last month. In January, the number of properties managed per branch increased to a high of 193, but this figure went back down to 183 per branch last month
This is a 4% increase from February 2016, when there were 176 properties managed per branch, indicating stock is rising overall.
Demand for rental properties
In February, there were 34 prospective tenants registered per member branch – this is the same number as January, but down year on year with 37 registered in February 2016 and 40 in February 2015.
David Cox, ARLA Propertymark Chief Executive, said: “The fact that rent prices in London are bucking the national trend is a positive sign for both renters and prospective renters in the Capital. However, this isn’t being seen across the rest of the country, as the national average for the number of agents reporting rent hikes rings alarm bells.
While London’s results indicate a step in the right direction, it must be taken with a pinch of salt. With the imminent withdrawal of mortgage interest relief and the Government’s decision to ban letting agent fees will more than likely have the opposite effect on rental costs across the country if an out-right ban is imposed. The costs of the services provided by letting agents will need to be recouped and will inevitably be passed onto renters through increased rent.”
