Private Lettings Sector New Landlords
The likely general election is an opportunity for the government to make the private lettings sector more appealing for would-be landlords, says ARLA.
“With the possibility of a general election approaching, we hope that the government recognises the importance of increasing supply for tenants and uses it as an opportunity to make the private lettings sector more attractive for landlords” says David Cox, the association’s chief excecutive.
The comments came in the light of the latest rental market snapshot by ARLA.
This shows that the number of tenants experiencing rent rises decreased in September but remained high overall, with 58 per cent of agents witnessing an increase in rent prices.
Year-on-year, this figure is up significantly from 31 per cent in September 2018, and 27 per cent in September 2017.
“While the number of tenants experiencing an increase in rent has dropped marginally [on a monthly basis] rent prices remain alarmingly high as they have done since the Tenant Fees Act came into effect” claims Cox.
“It’s also concerning to see that the number of properties managed per letting agent branch has fallen. As supply falls, competition amongst tenants increases which further drives up rent costs” he adds.
Meanwhile on the supply side, the number of properties managed per branch fell to 193 in September, from 197 in August.
Year-on-year supply is down very slightly from 194 in September 2018, but up from 189 in September 2017.
Demand from prospective tenants also dropped, with the number of house hunters registered per branch falling to 72 on average, compared to 76 in August.