ARLA Propertymark (the Association of Residential Letting Agents) is predicting a stormy 2019 for tenants, following the release of its latest Private Rented Sector Report, covering November.
The number of private tenants experiencing rent price rises fell for the third consecutive month in November, with 21% of ARLA Propertymark member letting agents reporting that landlords put their rents up in the month. This is down from 24% in October and 31% in September.
However, on a year-on-year basis, the amount of tenants experiencing rent increases is up from just 16% in November 2017.
The supply of properties available to let fell to an average of 183 per member branch in November, from 198 in the previous month.
This is the lowest level seen since April this year, when supply stood at an average of 179 properties, and is down by 4% on November 2017.
Demand from prospective tenants was also down in November, with the number of home hunters registered per member letting agent branch dropping to an average of 55, compared to 71 in October.
Having assessed these statistics, the Chief Executive of ARLA Propertymark, David Cox, is predicting a stormy 2019 for tenants.
He says: “It looks like tenants are starting to take control, with the number of landlords hiking rents falling for the third month in a row. However, as we look ahead to 2019, things don’t look as positive for tenants. Our members expect more landlords to be driven out of the market by rising costs, which will increase competition and push up rent costs. If we want to secure market stability in the New Year, we need to increase stock, and making the market more attractive for buy-to-let investors is the only way this can be done.”
Do you believe that the end of this year is the calm before the storm for tenants?