Rental rises in private rental sector
Whilst the number of tenants looking for new homes has fallen, rents continue to increase.
The May figures published by ARLA have produced figures showing that the number of managed rental properties increased by 4%, the highest monthly increase this year.
The number of tenants experiencing rent hikes increased to 28% from 26% and the highest level since August 2017 when the figure was 35%.
The number of prospective tenants dropped to 60 per member branch compared to 72 in April. This is the largest monthly drop since December 2017.
A statement from the ARLA chief executive, David Cox says
‘There’s a chronic supply shortage in the rental market at the moment, and while it’s positive that the number of properties available to rent seems to be rising but it isn’t nearly enough to fix the market for tenants. Competition is getting more and more fierce, and with legislative changes hitting landlords from all sides, the cost of renting is only increasing.
The Government’s recent announcement around licensing changes for landlords is a prime example. Licensing doesn’t work and it never has done. It means councils will spend time and energy administering schemes, rather than concentrating on increasing housing stock in their areas and enforcing against rogue, criminal landlords.
Coupled with the gradual removal of mortgage interest relief, new energy standards for landlords and the ever increasing fees for these schemes, landlords are being expected to bear more and more costs which is probably why the number of landlords leaving the market has remained at the all-time high we saw last month.
We’re all striving for the same end goal of improving the private rental sector for consumers, but the only thing which will truly create a better, fairer market, is a dramatic increase in supply.’