27 Nov

No relief for tenants as rent costs remain high

No relief for tenants as rent costs remain high

Comparing statistics from September over the past three years ARLA Propertymark’s Private Rented Sector (PRS) report shows the number of tenants experiencing rent rises fell marginally this year, with 58 per cent of agents witnessing landlords increasing them.

Year-on-year, the figure for rent rises is up from 27 per cent in September 2017 and 31 per cent in September 2018, as they remain high. Tenants in the North East of England were the worst affected with 86 per cent of agents witnessing an increase in rent prices.

Letting agents managed 193 properties per member branch on average in September, down from 197 in August. The number of properties under management is the highest in the West Midlands, where agents managed 271 properties on average per branch, and is lowest in the South East where agents typically had 152 properties on their books.

David Cox, ARLA Propertymark Chief Executive, said: “While the number of tenants experiencing an increase in rent has dropped marginally, rent prices remain alarmingly high as they have done since the Tenant Fees Act came into effect. It’s also concerning to see that the number of properties managed per letting agent branch has fallen. As supply falls, competition amongst tenants increases which further drives up rent costs.

With the possibility of a general election approaching, we hope that the Government recognises the importance of increasing supply for tenants and uses it as an opportunity to make the market more attractive for landlords.”

Other statistics show:

Number of prospective tenants

Demand for rental properties dropped marginally in September, with letting agents registering interest from 72 new prospective tenants, as opposed to 76 in August.

The number of tenants registered per branch is the highest in London, where agents had 103 new prospective tenants on their books.

Demand from tenants is at its lowest in the North East of England with 40 tenants on average per branch.

Rent reductions

The number of tenants successfully negotiating rent reductions fell marginally to 1.2 per cent, from 1.3 per cent in August.

Length of tenancy

Tenants stayed in their properties for 19 months on average, down from 20 months in August.

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