Rents still rising despite fall in tenant demand

The number of tenants seeing their rents rise continues to go up according to the latest market snapshot produced by the Association of Residential Letting Agents.

It says some 31 per cent of renters saw their payments increase in the year to September - higher than comparable periods in 2017 and 2016.

However, ARLA says demand from prospective tenants fell marginally in September, with the number of house-hunters registered per branch dropping from 63 on average compared to 64 in August.

Year on year, demand is down 20 per cent as there were 79 prospective tenants registered per letting agent branch in September 2017.

The association also says that as landlords continue to leave the market - thanks to increased costs created by government fiscal changes - the supply of properties letting agents managed dropped to 194 per member branch in September, from 197 in August.

“This [rent rise] figure is still alarmingly high, and it continues to rise year on year. Increasing costs and continued regulatory change is pushing buy to let investors out of the market and deterring new ones from entering” says David Cox, ARLA Propertymark chief executive.

“An average of four landlords took their properties off the market per branch in September, up from three this time last year – and as supply falls, competition among tenants increases, which is driving up rent costs.

“With the Budget approaching [on Monday] we hope the government recognises the importance of increasing supply for tenants and uses it as an opportunity to make the market more attractive for BTL investors.”