The residential lettings sector in the UK has seen the supply of homes to rent increase to an 18 month high with demand also increasing.
The latest monthly report from the Association of Residential Letting Agents (ARLA) shows that the number of rental properties managed per letting agent branch reached 193 in September, up from 183 in August and the highest since April 205.
It was a welcome jump in supply as the number of rental properties managed per branch had fallen to lows of 171 so far this year and there was 40 prospective tenants registering interest per letting agent branch, up from 37 in August.
The report says that in line with expectations, demand from tenants has been steadily growing since the start of the year, and is now at the highest level seen since February 2015, when there were also 40 prospective tenants registered per branch.
The number of agents witnessing rent hikes for tenants is at the lowest level so far this year, with just 24% of agents reporting increases, down 3% from August when 27% of agents saw rent increases, and 8% down from a high of 32% in March 2016.
‘This month’s findings paint a really positive picture for renters. Although demand is rising, we’ve seen this happen gradually over the course of the year, and would expect it to slow again in line with seasonal trends over the next few months,’ said David Cox, ARLA managing director.
‘On the other hand, the supply of rental stock has risen astronomically, which suggest it’s not quite right that landlords are pulling out of the market as a result of Brexit. This is supported in our findings, which reveal the number of landlords selling their buy to let properties hasn’t changed since April, when three landlords were selling up per branch,’ he pointed out.
He explained that it is good to see less landlords hiking rents this month, but ARLA believes that 24% is still too high. ‘The cost of renting is already high in many parts of the country and until the Government converts its pledges and promises into bricks and mortar, we won’t see renters reach a position where they’re able to save to get on the housing ladder. It will be interesting to see how this is tackled in the upcoming Autumn Statement,’ said Cox.
