Tenant demand and sustained depletion of rental stock have seen average rents surge for the second consecutive month, according to data released by ARLA Propermark.
According to the figures, the average number of new prospective tenants registered per branch jumped in August to 107, from July’s figure of 102 - the highest figure ever recorded for the second month running and surpassing last month’s previous record, when the number of prospective tenants registered per branch was 102. Prior to this, the all-time record was during August 2020 when the figure stood at 101.
Supply of rental stock
The number of properties managed per letting agent branch decreased from 204 in July to 196 in August - remaining in line with the previous month’s figure of 184 during June this year.
Year on year, this is slightly less than during August last year when the figure stood at 208. Regionally, Scotland had the highest number of properties managed per letting agent branch with a figure of 251. However, rental stock was the lowest in London with an average of just 126 properties managed per branch.
The number of tenants successfully negotiating rent reductions Decreased from 1.1% in July to 0.4% in August. This is the lowest number recorded during the month of August since records began.
The number of tenants experiencing rent increases jumped significantly for the second month in a row in August, as 79 per cent of agents saw landlords increasing rents compared to 71 per cent in July. This is the highest rate increase on record, beating the previous record of 68 per cent in May this year for a second month running.
Propertymark’s CEO Nathan Emerson, comments: “The continued increase in demand from tenants, coupled with the decreasing amount of rental stock available means we are seeing a worrying increase in rent prices for the second month running. The private rented sector provides homes for approx. 5m UK households and it is vital the service being provided by landlords is recognised. With the increasing pressure, more landlords need to be incentivised into the sector.
“We look forward to meeting the newly appointed Secretary of State and his team over the coming months to ensure keeping the rent flowing is high on the Department’s agenda going forward, and we have a close eye on the overall sector for the rest of the year as the growing concerns over house buyers jumping ship from the buying and selling market is bound to put extra pressure on the private rental sector.”