Rent rises still well below late summer levels

The latest rental market snapshot from ARLA Propertymark suggests that only 30 per cent of tenants experienced rent increases in December - well below the late summer level of 40 per cent.

The survey, based on ARLA member agents’ responses, shows that the December 30 per cent level is slightly higher than the month before, but still well below that late summer figure hit in September.

The number of new prospective tenants fell slightly in December to an average of 64 registered per branch from an average of 65 in November; year-on-year this is eight per cent higher than in December 2019 when the figure stood at 56.

Regionally, the West Midlands had the highest number of new tenants registered per branch with an average of 87. London had the second highest figure of 73 new tenants registered per branch in December.

In terms of supply, the number of properties managed per letting agent branch fell by five per cent from 214 in November to 204 in December.

The number of landlords selling their buy to let properties remained the same as November at four per branch in December. Year-on-year this is the same figure as during December 2019.

“The slight fall in prospective tenants and properties managed per branch during the month of December is consistent with the usual seasonal lull, and testament to the current steady rental market” according to Propertymark’s chief policy adviser Mark Hayward.

“Letting agents are continuing to support landlords and their tenants during these ongoing difficult times, and it is imperative that tenancies are maintained to keep the rent flowing.

“The continuity of the private rental sector is vital to the nation’s economic bounce back from the COVID-19 pandemic.”