UK Private Rented Sector Report for May

Rent Costs Start to Indicate Upward Trend

  • More than a quarter of agents witnessed rent hikes for tenants
  • The number of properties available to rent per letting agent branch rose in May

Rent prices

  • More than a quarter (27 per cent) of agents saw rent costs rise for tenants in May – the highest level since July 2016 when 28 per cent saw rents increase
  • For the second month running, only 2.8 per cent of tenants successfully negotiated a rent reduction – this figure rose to 3.6 per cent in March from 2.2 per cent in February

Rental stock

  • Over the last 12 months, the supply of rental stock has risen by 11 per cent. In May 2016, letting agents managed 171 properties on average per branch whereas in May this year they managed 189

Landlords selling their buy-to-let

  • The number of landlords selling up fell in May – in April agents reported four sales per branch, but this figure dropped to three in May

Demand from tenants

  • In May, ARLA Propertymark members had 65 prospective tenants registered per branch.

 

David Cox, ARLA Propertymark Chief Executive, said: “Private rents rose by 1.8 per cent in the 12 months to May 2017, and the last thing tenants need is for them to get even higher. With the new government confirming a Tenants’ Fee Bill in last week’s Queen’s Speech, we can expect them to rise by up to £103 a year, hitting loyal tenants looking for long-term agreements hardest. This is on top of any natural organic rent growth as well. The only thing which could offset this would be to significantly increase rental stock, but until this happens and supply and demand meet in the middle, rents will only become more and more unaffordable.”

View the latest report

View Our Reports Archive

If you would like to take at our older reports to see how the market has changed over the years please read more ...

Before 2015 we completed quarterly surveys of member firms and residential landlords. To access this click the buttons below.

Historic member firm surveys

Historic residential landlord surveys