The latest ARLA (Association of Residential Letting Agents) Propertymark June PRS Report highlights how rental hikes have hit a 14-month high.
The monthly study of the private rental sector shows that 31% of letting agents saw rents rise for tenants in June - an increase of 4% from May.
This is the highest level since April 2016, when 31% of lettings agents reported rent hikes too.
Agents also reported that the number of properties managed per member branch increased marginally in June, to 190 – up from 189 in May. In June last year, letting agents managed just 176 properties on average, meaning that year on year, this figure has increased by 8%.
While rent stock increased marginally in June, overall demand dropped slightly.
The survey also found that:
- 83% of letting agents would like the Government to scrap the impending ban on letting agent fees;
- 73% would also like the Government to focus on improving enforcement for rogue agents;
- want the new Government to regulate the sector;
- 26% think they should provide tax breaks to encourage longer term tenancies.
ARLA Propertymark Chief Executive David Cox, said: “With the cost of living on the rise and inflationary pressures tightening, the last thing tenants need is for their rents to continue rising. However, the fact that supply looks to be rising, while demand has dropped slightly indicates a move in the right direction for the market. Ultimately, to stop rent prices from increasing too much, we need to find the balance between supply and demand. While there’s still a long way to go, if the supply of rental stock continues to increase, and the number of tenants searching for new properties drops off, we’ll be making headway towards achieving this.”