More and more agents are witnessing increases in the cost of renting, according to the Association of Residential Letting Agents.
Its latest market survey shows that 36 per cent of agents reports rents have increased in June, the highest number since the association started tracking levels.
More predictably, perhaps, 80 per cent of ARLA-registered agents predict that private rents will continue to soar over the next five years.
ARLA’s report found that tenants in the East Midlands suffered the most, with almost half of agents stating that rents had increased in June, compared to only 17 per cent in Wales.
Supply and demand shifted marginally in June, with an average of 178 properties managed per branch, compared to 179 in May. There was an average of 36 prospective tenants registered per ARLA branch in June, the same as the previous three months.
However, the report also revealed that supply in London continued to drop with only 118 rental properties managed in June, compared to 134 in May – a decrease of 12 per cent.
“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” admits David Cox, ARLA’s managing director.
“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.”
As the summer holidays begin, interest in short term lets has risen further, with a third of agents reporting an increase in enquiries for short term lets in June. This new figure of 33 per cent is a rise of seven per cent from last month.