Agents Warn - tough year coming up for rental sector

The UK Association of Letting Agents says a survey of its members suggests that 2023 will be a tough year for tenants in the private rental sector. 

It reveals that 79 per cent of member letting agents see rents rising in 2023 - of those, 58 per cent say the rise will be up to 10 per cent and just over a fifth predict it will be over 10 per cent. 

Only one in seven forecasts no change and virtually none predict rents falling.

Tenant arrears forecasts were also concerning, with nearly 68 per cent of respondents seeing arrears increasing - one in 12 agents predict arrears will actually double. 

Tim Clark, chairman of UKALA, says the forecast is unsurprising. 

“The economic situation in the UK is, as we know, going to be difficult next year and this will clearly impact on rents, due to rising costs for landlords, and increased tenant arrears due to affordability” he says.

When asked about the availability of rental stock, 89 per cent of agent respondents saw their landlords reducing portfolios in 2023 - 61 per cent  slightly, and 28 per cent significantly. 

Not a single agent saw their landlords increasing their portfolios and only 11 per cent forecast no change occurring.

Clark adds: “The increasing burden on landlords, which has been happening for quite some time, is now starting to have a real impact on the availability of rental stock in the private sector. Our survey results show this quite starkly.”

The survey was conducted in late November and early December 2022 among all UKALA’s 1,100 letting agent members across England, Scotland and Wales.