Good news for landlords as supply falls and tenant demand rises
The supply of rental properties fell by 8% from December to January, according to ARLA Propertymark.
Letting agencies are now managing an average 184 properties per branch – a three month low.
But at the same time demand from prospective renters is up and more tenants saw a rent hike in January.
The gap between supply and demand widened last month, with more prospective renters coming onto the market.
On average, letting agents registered 70 prospective tenants per branch in January, compared to just 59 in December.
One in five (19%) tenants experienced rent hikes in January, up from 16% in December.
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.”