Tenants putting the brakes on rent rises, warns ARLA
Fewer tenants are experiencing rent increases, according to the Association of Residential Letting Agents’ monthly market report.
The number of letting agents reporting rent increases for tenants fell to 25 per cent in October compared to 32 per cent in September – the newer figure is the lowest this year.
Demand for rental properties dropped in October, alongside supply of available housing – a trend typical of the time of year. ARLA agents registered 33 new tenants on average per branch this month, the lowest amount this year.
However, the London rental market bucked this trend.
The report found that demand for rental housing in London continued to increase in October – with an average of 42 prospective tenants registered per branch, up from 39 in September – an eight per cent increase.
Supply of rental accommodation decreased in line with demand, dropping from 182 properties on average per branch in September, to just 173 in October.
However, prospective renters in the East of England and the South West will have better luck finding a property; agents in those regions managed more properties in October than September, with 199 and 184 properties managed respectively.
ARLA managing director David Cox anticipates more of the same in 2016.
“We’d hope to see the number of tenants experiencing rent hikes remain low with supply and demand levelling out. However, a lot is resting on the economic and political agenda” he says.
“We’re still waiting for new houses, promised by the Prime Minister to be built. Whilst this will take pressure off the rental prices as supply rises, the changes to landlord tax proposed under the Finance Bill is likely to discourage new landlords from entering the market” notes Cox.