Rents for new tenancies in the UK were stable in July, latest agent data shows
The number of letting agents who saw rents rise for tenants remained at 31% in July but up from 27% in May, according to the latest private rented sector survey.
This compares with 28% in July 2016 and the report from the Association of Residential Lettings Agents also shows that demand from tenants is increasing.
Overall, the number of properties managed per member branch increased marginally in July, to 192, up from 190 in June. This is the highest level since January, when agents managed 193 on average. Year on year, this figure has increased by 4% as in July last year letting agents managed 184 properties on average, while demand from new tenants increased to 70 in July from 61 in June.
‘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,’ said David Cox, ARLA chief executive.
‘Neither of these outcomes benefits tenants. If landlords exit the market, supply is even more strained and matched with growing demand, rent prices will increase anyway,’ he pointed out.
‘The 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,’ he added.