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TODAY'S OTHER NEWS

Low rental supply pushes demand and rental increases to record highs

Record demand and low levels of supply have pushed the number of tenants experiencing rental increases to new highs, lettings agents claim.

The ARLA Propertymark Private Rented Sector Report for August found the average number of new prospective tenants registered per branch jumped in August to 107, from July’s figure of 102.

This is the highest figure ever recorded for the second month running.

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However, the number of properties managed per lettings agent branch decreased from 204 in July to 196 in August.

This coincided with a record rise in the number of tenants experiencing rent increases, with 79 per cent of agents reporting landlords had increased rents, compared with 71 per cent in July.

The number of tenants successfully negotiating rent reductions decreased from 1.1 per cent in July to 0.4 per cent in August, the lowest number recorded during the month of August since records began.

Nathan Emerson, chief executive of Propertymark, said: “The continued increase in demand from tenants, coupled with the decreasing amount of rental stock available means we are seeing a worrying increase in rent prices for the second month running.

“With the increasing pressure, more landlords need to be incentivised into the sector.

“We look forward to meeting the newly appointed Secretary of State and his team over the coming months to ensure keeping the rent flowing is high on the department’s agenda going forward.

“We have a close eye on the overall sector for the rest of the year as the growing concerns over house buyers jumping ship from the buying and selling market is bound to put extra pressure on the private rental sector.”

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