Bad news for tenants – rents stay high in July
Rents stayed high in July, according to a survey of letting agents by ARLA Propertymark (formerly the Association of Residential Letting Agents).
It found that the number of letting agents who saw rents rise for tenants remained at 31% in July, the same level as June and up from 27% in May. The proportion was also up on a year ago when 28% of letting agents saw rents rise.
Rent stock continued to slowly grow, said ARLA, with the number of properties managed per letting agent branch increasing to 192 in July, its highest level since January and up from 190 in June.
Demand from tenants was also up, with the number of prospective new tenants increasing to an average of 70 per branch in July, from 61 in June.
David Cox, chief executive of ARLA Propertymark, said: “Landlords really are stuck between a rock and a hard place. All the tax increases they’ve incurred over the last 18 months have meant they either need to sell their properties and exit the market, or increase rent payments to plug the deficit.
“Neither of these outcomes benefit tenants; if they exit the market, supply is even more strained and matched with growing demand, rent prices will increase anyway.
“Government may claim they are helping tenants but the unintended consequences of their actions on the private rental sector are now really being felt by tenants in terms of lack of homes to choose from and the feeling of being constantly priced out of the market. This needs to change.”