Summary of our findings

  • Supply of rental properties were at their highest in Decemvber, when it stood at 200. On average in 2016, the number of properties available per branch was 180, compared to 189 in 2017.
  • This year, the number of buy-to-let (BTL) landlords selling their properties peaked in March and April when agents reported a 33 per cent spike in the number of landlords selling up.
  • In August, the number of tenants experiencing rent hikes peaked at 35 per cent, before falling to 27 per cent in September. Rents for tenants were least likely to increase in November or December (16 per cent) but overall in 2017, 25 per cent of tenants had their rents increased compared to 26 per cent in 2016
  • Tenants were the most successful at negotiating rent reductions in March (3.6 per cent). In 2016, the most successful month for rent reductions was December when 3.1 per cent successfully negotiated.
  • On average, properties were viewed more times before being let in 2017, than 2016. In 2016, letting agents typically hosted five viewings per property, which rose to six in 2017.

Supply of rental properties

Managed properties
Highest

200
December

Average

189

 

Lowest

182
October

Number of prospective tenants

Prospective tenants
Highest

79
September

Average

59

 

Lowest

34
January and February

Percentage of agents witnessing rent hikes

rent hikes
Highest

35%
August

Average

25%

 

Lowest

16%
November and December

It was always going to be an interesting year, following the announcement of the letting agent fee ban in last November’s Autumn Statement. I think we’re starting to see a consolidation of some agencies in the industry as the fee ban looms, which could explain why the number of properties under management has increased. Landlords are becoming more selective about their property investments in light of last year’s Stamp Duty Land Tax (SDLT) changes. Mortgage Interest Relief (MIR) is starting to bite which is why we saw an increased number of landlords selling up. It’s likely that as we move into 2018, tenants will continue to see rent increases as supply starts to reduce, demand continues apace, and legislative changes increase costs for landlords.
David Cox Former Chief Executive | ARLA Propertymark

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We've combined all of the monthly reports into one document so that you can quickly get a detailed look at our findings from 2017.

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