The number of tenants in the UK’s private rented sector experiencing rent increases fell for the fourth month running in December but letting agents expect challenges ahead for the sector.
Overall some 18% of agents reported that landlords had increased rent, the lowest figure since December 2017, according to the latest monthly report from the Association of Residential Letting Agents (ARLA).
Since August, when the number of tenants experiencing rent rises rose to the highest level ever recorded at 40%, the figure has continued to fall.
The report also reveals that the supply of properties for rent increased to 193 per agent branch, up from 183 in November, but year on year it is down by 4%.
Demand from prospective tenants decreased in December, with the number of house hunters registered per branch dropping to 50 on average compared to 55 in November and the number is also down year on year from 59 in December 2017.
But David Cox, ARLA chief executive, warned that rents could rise in 2019, most likely due to the banning of tenant fees in June. ‘It’s only a matter of time until we could see rent prices starting to creep up again,’ he said.
‘As we’ve said repeatedly, landlords have faced continued regulatory change and increasing costs over the last few years, and the tenant fees ban will only add to this burden meaning many will either have to start increasing rents for tenants or exit the market,’ he added.
