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Number of prospective tenants continued to rise in February

In February, the number of new prospective tenants in the UK rose for the second consecutive month according to the latest Private Rented Sector report by ARLA Propertymark.

The data showed that the average number of new prospective tenants registered per branch continued to rise in February to 82, from January’s figure of 81. Year-on-year this remains the same as February 2020 but is a huge leap from the previous February figure of 65 in 2019.

Regionally, the West Midlands had the highest number of new tenants registered per branch with an average of 126, with the East Midlands having the second highest of 123 new tenants. Northern Ireland and The Isle of Wight both recorded the lowest number of new prospective tenants, with an average of 26 registered per branch in February.

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The number of tenants experiencing rent increases jumped in February as half (49%) of agents saw landlords increasing rent compared to 39% in January. Year-on-year this figure is also up from 40% in February 2020. The number of tenants successfully negotiating rent reductions remained the same at 2% in February. Year-on-year, this is the same as during February 2020.

The number of properties managed per letting agent branch fell for the third month in a row from 196 in January to 195 in February. Regionally, the North East had the highest number of properties managed per letting agent branch with a figure of 284. Rental stock was the lowest in London, with an average of 94 properties managed per branch.

The number of landlords selling their buy-to-let properties remained the same for the fifth month in a row, at four per branch in February. Year-on-year, this figure is slightly lower than the February 2020 figure of five.

Read about the UK Housing Market via our Specialist Residential & Buy to Let Division

Mark Hayward, chief Policy Advisor at Propertymark, said: “Today’s report demonstrates that the rental market continues to show no sign of slowing down, as demand for rental properties rose yet again in February.

“Letting agents have continued to support landlords and their tenants throughout the ongoing COVID-19 difficulties, and it is essential that tenancies are maintained wherever possible to ensure rent keeps flowing.”

Source: Property Wire

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Rental cost and increases at record levels

In August, the number of tenants experiencing rent hikes increased to 40%, from 31% in July. This is the highest figure recorded since records began in January 2015 and the highest level every in August.

Year on year, this figure has increased from 35% in August 2017 and 27% in August 2016.

ARLA Propertymark is today issuing its August Private Rented Sector (PRS) Report.1

David Cox, ARLA Propertymark Chief Executive, said: “As we’ve highlighted before, the impact of recent and ongoing tax changes continues to have a material impact on the buy-to-let market. Four in ten tenants saw their rents rise in August – the highest level we’ve seen since records began. Although it’s encouraging to see the number of properties available to rent rising, supply still isn’t anywhere near high enough to slow down the pace of rent rises. We need more homes to rent, and for Government to change its narrative and recognise the very valid role buy-to-let plays in the housing mix. Driving small landlords out of the market ultimately impacts tenants most.”

Demand from tenants

  • Demand from prospective tenants fell significantly, with the number of house-hunters registered per branch dropping by 19% in August to 64 on average, compared to 79 in July.
  • Year on year, demand is down 11% as there were 72 prospective tenants registered per letting agent branch in August 2017.

Supply of rental stock

  • The supply of available properties rose to 197 in August, from 184 last month.
  • This is the highest figure seen since December 2017, when supply stood at 200.
  • Year on year, this figure is up four per cent from 189 in August 2017.

Source: Property118

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Prospective Tenants Reach Record Numbers

The number of new prospective tenants has reached its highest level seen in 2018 so far.

ARLA Propertymark’s July Private Rental Sector report has found that the number of new prospective tenants registered per letting agent rose from 71 in June to 79 per cent in July. This is the highest level seen in 2018 so far.

This figure has not been so high since September 2017. During this month there were also 79 per branch.

The report also found that year on year, demand is up 13 per cent. There were just 70 prospective tenants registered per letting agent in July 2017.

A decline in rental property supply was also noted in July, falling from 191 in June to just 184 in July. Year on year, this figure has fallen four per cent from 192 in July 2017.

The report also focused on rent increases. Many landlords have been forced to offset costs from growing regulation onto tenants. In June, the number of tenants who saw their rent increase grew to 35 per cent. However, this declined slightly n July to 31 per cent. Year on year, this figure has not seen much fluctuation, remaining at 31 per cent in July 2017 as well.

ARLA Propertymark Chief Executive, David Cox, said: ‘Buy to let investors are being pushed out of the market by increasing costs and continued regulatory change, and new landlords are being deterred from entering. Last month, an average of four landlords took their properties off the market per branch, up from three this time last year – and as supply falls, competition among tenants increases, which pushes up rent costs.’

He continued: ‘Almost a third saw their rents rise last month, and although this figure was down from June, it’s still far too high. To put tenants back in the driving seat, we need more homes available to rent, and the only way this will be achieved is if the Government makes the market more attractive for buy to let investors.’

Source: Residential Landlord