High demand for rental properties
Demand for rental properties in August rose to its highest level since June, according to the Association of Residential Letting Agents.
It found that on average letting agents had 37 prospective tenants registered per branch, a rise on earlier in the year, and up compared to the same time in 2015.
But supply dipped in August, with the number of rental properties on letting agents’ books slightly down to 183, from 184 in July. Year-on-year supply was up by 3% from 178 properties last August.
The number of tenants negotiating rent reductions rose in August to the highest levels seen since records began at the start of last year. ARLA members reported that 3% of tenants secured a rent reduction last month, compared to 2.1% in July.
Over half of ARLA members (51%) still report signs of uncertainty from either those looking to rent or those looking to let a property following Brexit, but most reported that this had no material effect on supply or demand.
David Cox, managing director of the Association of Residential Letting Agents (ARLA), said: “Although Brexit painted a temporary picture of uncertainty for tenants and landlords, our findings show that the market remains in good shape. We’re not seeing anything across supply or demand that is out of the ordinary, and while demand is at high levels, this is being matched with a decent volume of properties on the rental market.
“What’s good is that more tenants are managing to successfully negotiate rent reductions, and that agents and landlords seem to be responding well to this. The rising cost of renting, especially in major cities such as London, is an ongoing issue in both the buying and lettings market so it’s promising to see small steps towards better affordability for renters.”