Rent prices remained high in July, according to the July Private Rented Sector Report from ARLA Propertymark (the Association of Residential Letting Agents).
Rents Remained High in July, Reports ARLA Propertymark
The number of letting agents who saw landlords increasing rent costs for tenants remained at 31% in July. In June, it also stood at 31%, but had risen from 27% in May.
In comparison, July 2016 saw just 28% of agents witnessing rent price growth.
The average number of rental properties managed per member branch increased marginally in July, from 190 in June to 192. This is the highest level since January, when agents managed 193 on average.
Annually, this figure has risen by 4% – in July last year, letting agents managed an average of 184 properties.
Demand from prospective new tenants grew from 61 in June to 70 in July.
The Chief Executive of ARLA Propertymark, David Cox, explains what the figures mean for the market: “Landlords really are stuck between a rock and a hard place. All the tax increases they’ve incurred over the last 18 months have meant they either need to sell their properties and exit the market, or increase rent payments to plug the deficit. Neither of these outcomes benefit tenants; if they exit the market, supply is even more strained and, matched with growing demand, rent prices will increase anyway.
“Government may claim they are helping tenants, but the unintended consequences of their actions on the private rental sector are now really being felt by tenants in terms of lack of homes to choose from and the feeling of being constantly priced out of the market. This needs to change.”
How has your property investment strategy changed since the Government’s tax hikes were introduced?
Another study revealed that landlords are now turning to holiday lets, which will also be hitting long-term tenants.