Rate of tenants experiencing rent rises increases

PRS REPORT: The number of tenants experiencing rent increases rose for the first time since September 2018. In the wider market, the average numbers of managed properties and prospective renters increased when compared to December.

Rent prices

  • The number of tenants experiencing rent rises increased in January, with 26 per cent of agents witnessing landlords increasing them, compared to 18 per cent in December.
  • This is the highest figure recorded since September, when 31 per cent of tenants were experiencing rises.
  • Year on year, this figure is up 7 percentage points, compared to January 2018.
Rent hikes Jan

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

Supply of rental stock and demand from tenants 

  • The supply of properties available to rent rose to 197 in January, from 193 in December. 
  • Demand from prospective tenants also increased in January, with the number of house-hunters registered per branch rising to 73 on average, compared to 50 in December.

This month’s results are another huge blow for tenants. With demand increasing by 46 per cent from December, and rents starting to rise in response to all of the cost increases landlords have experienced over the last few years, tenants are in for a rough ride. Last month, there were three landlords selling their buy to let (BTL) properties per branch, and as landlords continue to exit the market, rent prices will only continue to rise.

With the Tenant Fees Act passing its final hurdle in the House of Commons and receiving Royal Assent this month, tenants will continue bearing the brunt, as agents and landlords start preparing for a post-tenant fees world.

David Cox Chief Executive | ARLA Propertymark

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