Record drop in rent hikes
Fewer tenants are experiencing rent increases, according to the latest report published by the Association of Residential Letting Agents (ARLA).
Just 25% of letting agents reported rent increases for tenants in October, compared to 32% in September – meaning the number of rent hikes last month was the lowest reported this year.
Demand for rental properties also dropped in October, alongside supply of available housing – a trend that is typical of the time of year. ARLA agents registered 33 new tenants on average per branch this month, the lowest amount in 2015.
However, the London rental market bucked this trend with demand for rental housing in the capital actually increasing by 8% in October. An average of 42 prospective tenants registered per branch, up from 39 in September.
David Cox, managing director of the Association of Residential Letting Agents, said: “Finally, some good news this month – fewer agents reporting rent increases should bring some relief to tenants before Christmas. It’s definitely a step in the right direction, however a quarter of tenants are unfortunately still seeing hikes.
“Looking ahead to next year, we’d hope to see the number of tenants experiencing rent hikes remain low with supply and demand levelling out. However, a lot is resting on the economic and political agenda. We’re still waiting for new houses, promised by the Prime Minister to be built. Whilst this will take pressure off the rental prices as supply rises, the changes to landlord tax proposed under the Finance Bill is likely to discourage new landlords from entering the market.”