According to new figures released by ARLA Propertymark, the percentage of tenants experiencing rent hikes was at the highest level ever recorded in August reaching 40% - up from 31% a month earlier. This is the highest figure recorded since records began in January 2015.
Year on year, this figure has increased from 35 per cent in August 2017 and 27 per cent in August 2016.
Demand from prospective tenants fell significantly, with the number of house-hunters registered per branch dropping by 19 per cent in August to 64 on average, compared to 79 in July. Year on year, demand is down 11 per cent as there were 72 prospective tenants registered per letting agent branch in August 2017.
Supply of rental stock
• The supply of available properties rose to 197 in August, from 184 last month.
• This is the highest figure seen since December 2017, when supply stood at 200.
• Year on year, this figure is up four per cent from 189 in August 2017.
David Cox, ARLA Propertymark Chief Executive, said: “As we’ve highlighted before, the impact of recent and ongoing tax changes continues to have a material impact on the buy-to-let market. Four in ten tenants saw their rents rise in August – the highest level we’ve seen since records began. Although it’s encouraging to see the number of properties available to rent rising, supply still isn’t anywhere near high enough to slow down the pace of rent rises. We need more homes to rent, and for Government to change its narrative and recognise the very valid role buy-to-let plays in the housing mix. Driving small landlords out of the market ultimately impacts tenants most.”