North West highest for tenant demand as London records lowest

PRS REPORT: Propertymark members reported the lowest number of new prospective tenants in October since December 2020.

Furthermore, October was the second consecutive month that saw a decline in prospective tenants, signalling a return to balancing supply and demand needs.

Renting a property

The report identifies the North West as having the highest number of new tenants registered per branch, with an average of 163 prospective renters being signed up across branches in October. Yorkshire & Humberside, Wales and Northern Ireland were at the opposing end of the spectrum with an average of 26 new tenants registering per branch.

Overall, Propertymark members recorded an average of 71 prospective tenants throughout October, a slight decrease from September's figure of 83.

Rent increases

Another trend identified is the decline in tenants experiencing rent increases, as 68 per cent of member agents saw landlords increasing rents compared to 75 per cent in September. This is the lowest rate increase since June, where rent increases stood at 60 per cent. Alongside the decline in rental increases, more tenants (0.8 per cent) successfully negotiated a rent reduction than in September (0.5 per cent).

Properties to rent

North East Propertymark members recorded the highest number of properties managed per letting agent branch with a staggering 350, whilst in London, agents highlighted a lack of rental stock with an average of just 69 properties managed per branch. 

The PRS remains under pressure, however, demand has fallen for the second consecutive month and the number of tenants experiencing rent increases has fallen. There are clear issues with the availability of properties, with some regions, London in particular, being in very short supply of rental stock.

This is being exacerbated by the current legislative and regulatory changes taking place, as well as energy efficiency targets, both of which are squeezing landlords and making them consider leaving the market. Under this increasing pressure, it is crucial that measures are introduced to retain landlords and incentivise more into the sector.

Nathan Emerson CEO | Propertymark