Demand for rental accommodation sees January spike
According to ARLA, during January, there were 34 prospective tenants registered per member branch. This is up 31 per cent from December when there was a seasonal lull and just 26 prospective tenants at each branch. In January 2016 there were 31 tenants registered per branch, meaning in 12 months demand for rental accommodation has risen by 10 per cent.
Supply of rental stock
The number of rental properties letting agents managed increased in January. In December there were 188 properties managed per branch, whereas in January there were three per cent more with 193 per branch
In January 2016, there were 12 per cent less, with 173 properties managed per branch.
Almost a quarter (23 per cent) of agents saw tenants experiencing rent hikes in January. This is down year-on-year, as 30 per cent of agents witnessed rent increases in January 2016.
David Cox, ARLA Propertymark Chief Executive, said: “As expected, the New Year brought with it a flurry of activity in the rental market. While supply of rental stock rose slightly, the number of prospective tenants increased by a much bigger margin. When supply and demand are out of kilter, as they have been for so long now, the market isn’t balanced and fair for tenants, and rent prices will just continue to rise.
Worse still, should the Government decide to implement an out-right ban on letting agent fees when the consultation takes place, the situation will likely get worse for tenants. The costs of the vital services letting agent fees cover will need to be recouped, and this will get passed on to renters in inflated rental prices. This, combined with new landlords’ tax, particularly the upcoming changes to mortgage interest release, means the rental market is far from reaching equilibrium.”
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