The supply of rental properties in Britain fell by 8% from December to January but at the same time demand from prospective renters rose, the latest survey of letting agents shows.
Rent rises also increased in frequency, presenting a bleak outlook for renters in 2018, according to the private rented sector report from the Association of Residential Letting Agents (ARLA).
There were 184 rental properties per member agent in January 2018, down from 200 in December. The last time supply reached a level this low was October 2017, when it stood at 182.
The research also shows that the gap between supply and demand widened in January with more prospective renters coming onto the market. On average, letting agents registered 70 prospective tenants per branch in January, compared to just 59 in December.
The year began with 19% of tenant seeing rent increases in January compared to 16% the previous month. However, the report explains that while this may appear bleak for tenants, it is actually down year on year. In January 2017 some 23% of tenants had their rents increased and 30% were subject to rent rises in January 2016.
‘This month’s results indicate that renters are in for a rough ride in 2018. Housing stock is falling as rising taxes continue to force established landlords out of the market and deter entry into the sector and the volume of renters is increasing as the cost of buying a home is moving further out of reach for many,’ said David Cox, ARLA chief executive.
‘The fact that one in five tenants are experiencing rent increases is just another blow. Ultimately, until the prospect of investing in the buy to let market is more attractive for prospective landlords, and stock subsequently increases, tenants will continue to feel the burn,’ he added.
