Over a third of agents confirm June rent rise
A growing number of letting agents are seeing increases in the cost of renting, according to new research.
The Association of Residential Letting Agents’ monthly Private Rental Sector Report suggests that 36% of agents indicated rents had risen between May and June. This was the highest total since tracking of figures began.
Predictions
80% of ARLA members forecast that rents will continue to rise during the next five years. This is thought to be as a result of the changes that will be introduced by the Chancellor which will reduce the amount of tax relief buy-to-let investors are entitled to.[1]
By region, the East Midlands had 48% of agents that indicated rents had climbed in June, in comparison to 17% in Wales. Supply was found to be fractionally down, with an average of 178 properties managed by each ARLA branch, in comparison to 179 in May. However, concern is growing for supply in the capital, with 118 rental properties managed per branch in June, as opposed to 134 in May, a fall of 12%.[1]
Over a third of agents confirm June rent rise
Holiday boom
With the summer holidays beginning, there has been a continued interest in short-term loans. 33% of agents reported an increase in enquiries for short-term lets in the last month. This represented a rise from the 26% reported in May. The North West has witnessed the greatest increase for short-term lets, with 43% of ARLA members in the region recording a rise in June.[1]
‘It’s worrying to see so many agents reporting an increase in the cost of rent over the last six months, especially considering so many people rent as a way to bridge the gap whilst they save to get onto the property ladder, ‘said David Cox, managing director of ARLA.[1]
Cox feels that, ‘findings like this continue to prove that the housing crisis isn’t going to disappear anytime soon and it will take a while before we see steps heading in the right direction.’ He believes, ‘the impact of the Chancellor’s reductions to the amount of tax relief buy-to-let investors can claim-announced in the Emergency Budget this month-will affect the cost of renting over the coming months and is likely to mean it will take even longer to see any improvement in affordability in the private rented sector.’[1]
[1] http://www.propertyreporter.co.uk/landlords/30-of-letting-agents-confirmed-june-rent-rise.html