Number of tenants negotiating rent reductions reaches all time low

PRS REPORT: The number of tenants negotiating rent reductions fell to 1.1 per cent in December, the lowest figure we have ever seen. In contrast, the number of agents witnessing rents increases remained high at 32 per cent.

Rent prices

  • The number of tenants negotiating a rent reduction fell to 1.1 per cent from 1.6 per cent in November, which is the lowest figure since records began. 
  • However, the number of agents witnessing rent increases remained at 32 per cent in December.
  • Year-on-year, this figure is still up from 16 per cent in December 2017 and 18 per cent in December 2018.
Rent prices year on year

Figure 1: Average number of tenants experiencing rent hikes in December year-on-year

Demand from tenants

  • Demand from prospective tenants fell last month with 56 prospective tenants registered per member branch, down from 67 in November.
  • Demand from prospective tenants has now fallen for the third consecutive month.

Supply of rental stock

  • However, the number of properties managed per branch rose last month from 203 to 206.
  • Year-on-year supply is up from 200 in December 2017 and 193 in December 2018.

Since the tenant fees ban came into effect, our data shows that rents reached an all-time high last year. While we have seen a slight drop in the number of agents witnessing landlords increasing rents since then, overall rents remain high and now it seems that tenants are finding it harder than ever to negotiate a reduction in rent.

As rents continue to rise, tenants will find it even more difficult to find suitable accommodation. Now that we have a new government in place, it’s important that long overdue legislative changes are implemented to make the market attractive again for both tenants and landlords.

David Cox Chief Executive | ARLA Propertymark

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