Number of tenants negotiating rent reductions reaches all time low
Em Morley - January 29, 2020
A recent survey from ARLA Propertymark highlights that the number of tenants negotiating a rent reduction fell in December 2019.
It went from an already low 1.6% in November to 1.1%, making it the lowest figure since records began in January 2015.
It has also been noted that the number of agents witnessing rent increases remained at 32% in December. However, year-on-year results show that this is still a massive increase on December 2017 and 2018, as shown by this chart from ARLA:
Demand from tenants
As well as a slight dip in negotiations, demand from prospective tenants fell last month. ARLA Propertymark recorded 56 prospective tenants registering per member branch in November, down from 67 in November.
Demand from prospective tenants has also fallen for member branches for the third consecutive month.
Supply of rental stock
Looking at available stock on the market, these results are more positive. The number of properties managed per branch rose last month from 203 to 206.
Year-on-year supply is also up from 200 in December 2017 and 193 in December 2018.
David Cox, ARLA Propertymark Chief Executive, has commented: “Since the tenant fees ban came into effect, our data shows that rents reached an all-time high last year.
“While we have seen a slight drop in the number of agents witnessing landlords increasing rents since then, overall rents remain high and now it seems that tenants are finding it harder than ever to negotiate a reduction in rent.
“As rents continue to rise, tenants will find it even more difficult to find suitable accommodation. Now that we have a new government in place, it’s important that long-overdue legislative changes are implemented to make the market attractive again for both tenants and landlords.”