Rental property supply plummets
The supply of rental property has fallen to its lowest level in a year, according to the Association of Residential Letting Agents.
Yet rental demand from tenants continues to rise.
The number of properties registered with each letting agent branch dropped by 5% to an average of 172 last month.
Supply in Scotland stands above this average, with 280 properties available per branch, while the supply of rental properties in London is lower, at 116 properties per branch.
Demand for accommodation
Demand for rental accommodation increased in January with an average of 31 prospective tenants now registered per branch.
But as a result of this growing demand, the number of agents reporting rent hikes for tenants increased, with three in ten (30%) reporting an increase in rent – the highest since September 2015.
David Cox, managing director of the Association of Residential Letting Agents (ARLA), said: “Supply of housing continues to be a problem and tenants bear the brunt of this with more people competing for properties at higher prices. The majority of tenants find that it is impossible to save very much at the end of the month to put towards buying their own home.
“Our recent Cost of Renting report found that a fifth of those renting in the UK do not expect to ever be able to afford to buy a home, and unless we act soon to build more properties, this number will only get higher.”