Analysis reveals that the average number of new prospective tenants in October was the lowest since December 2020, at 71 per branch, falling from September’s figure of 83.
This is the second consecutive month that the number of new prospective tenants registered per branch has fallen. Regionally, the North West had the highest number of new tenants registered per branch with an average of 163. This number was lowest in Yorkshire & Humberside, Wales and Northern Ireland where there was only an average of 26 new prospective tenants registered in October.
Rent prices
The number of tenants experiencing rent increases fell slightly in October, as 68 per cent of agents saw landlords increasing rents compared to 75 per cent in September. This is the lowest rate increase since June, where rent increases stood at 60 per cent.
The number of properties managed per letting agent branch decreased from 199 in September to 196 in October. Year on year this is slightly lower than during October last year when the figure stood at 213. Regionally, the North East had the highest number of properties managed per letting agent branch with a figure of 350. However, rental stock was the lowest in London with an average of just 69 properties managed per branch.
Rent Reductions
The number of tenants successfully negotiating rent reductions increased from 0.5 per cent in August to 0.8 per cent in September.
Nathan Emerson, Propertymark’s CEO, comments: “The PRS remains under pressure, however, demand has fallen for the second consecutive month and the number of tenants experiencing rent increases has fallen. There are clear issues with the availability of properties, with some regions, London in particular, being in very short supply of rental stock. This is being exacerbated by the current legislative and regulatory changes taking place, as well as energy efficiency targets, both of which could squeeze landlords and make them consider leaving the market. Under this increasing pressure, it is crucial that measures are introduced to retain landlords and incentivise more into the sector."
