Rental demand hits 2018 high as supply dwindles: ARLA

The number of tenants looking for new homes increased to the highest level seen since September 2017, according to the latest PRS report from ARLA Propertymark.

Related topics:  Property
Rozi Jones
28th August 2018
House hunting 1
"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."

The number of new prospective tenants registered per letting agent branch increased from 71 in June to 79 in July.

Year on year, demand is up 13% while the supply of available properties moved in the opposite direction, falling from 191 in June to 184.

In June, the number of tenants experiencing rent hikes increased to 35%, but this dropped slightly in July, to 31%.

David Cox, chief executive at ARLA Propertymark, 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.

"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 BTL investors.”

More like this
Latest from Financial Reporter
Latest from Protection Reporter
CLOSE
Subscribe
to our newsletter

Join a community of over 20,000 landlords and property specialists and keep up-to-date with industry news and upcoming events via our newsletter.