Demand for rental properties is continuing to rise, despite the number of available rental properties falling by 8% in January, according to research by ARLA Propertymark.
While the numbers of properties managed by each agent fell to 184 per branch (down from 200), on average, letting agents registered 70 prospective new tenants per branch in January, compared to just 59 in December.
It seems that the landlord’s market is having an impact on revenue, with one in five tenants experiencing rent increases in January, although this is less than the past two years.
There is a housing shortage in the UK coupled with a shortage of construction talent. This won’t be changing any time soon, as high property taxes, tighter lending rules and new energy performance regulations for landlords are combining to force established landlords out of the market, and deter new landlords from joining the sector.
David Cox, ARLA Propertymark Chief Executive, said:
“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. 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.”