The number of tenants in the UK’s private rented sector experiencing rent increases in February rose to the highest figure since last August, the latest letting agent report shows.
Some 34% of agents reported landlords increasing rents, up from 26% in January, according to the monthly report from the Association of Residential Letting Agents (ARLA).
This is the highest figure recorded since August 2018 when 40% of tenants had their rents increased, the highest on record and year on year the figure is up 14% from 20% in February 2018.
In line with this, the number of tenants successfully negotiating rent reductions fell to 2.3% from 2.5% in January 2019.
The report also reveals that more landlords are leaving the market and demand from prospective renters fell, while the supply of rental properties remained the same in February.
Indeed, the number of landlords exiting the market rose to four per branch, after falling to three in January and up from three in February 2018.
The number of house hunters registered per lettings branch fell to 65 on average, compared to 73 in January and the number of properties managed per branch remained at 197 in February, with no new properties coming onto the market.
David Cox, ARLA chief executive, said that the fall in the number of tenants successfully negotiating rent reductions was predicted. ‘We warned this would happen, as landlords continue exiting the market and increasing legislation deters new ones from entering,’ he pointed out.
‘The Chancellor’s Spring Statement included a number of initiatives aimed at growing housing stock for buyers, but it didn’t offer any solutions to increase the supply of properties in the private rented sector,’ he explained.
‘Unless the Government commits to making the prospect of investing in the PRS more attractive, and introduces measures to increase supply, tenants will only continue to feel the burn,’ he added.
