Private Rented Sector Report - June 2018

RISING RENTS HIT 10 MONTH HIGH

Key Findings

  • The percentage of tenants experiencing rent hikes rose to highest figure since August 2017
  • The number of rental properties letting agents managed increased by 3 per cent in June
  • The number of tenants looking for new homes increased

Rent prices

  • The number of tenants experiencing rent hikes rose to 35 per cent in June, up from 28 per cent in May
  • This is the highest level since August 2017 when the same 35 per cent of landlords increased rents for tenants.
  • This is a 13 per cent increase from June 2017.

Rent Hikes

Figure 1: Average number of agents witnessing rent hikes from June 2017 to June 2018

Demand from tenants

  • The number of prospective tenants registered per member branch increased in June, with 71 per branch compared to 60 in May – a 18 per cent rise.

Demand from tenants

  • The number of prospective tenants registered per member branch dropped significantly in May, with 60 per branch compared to 72 in April – a 16 per cent dip
  • This is the lowest demand seen since December 2017, when there were 59 registered per branch.2

Landlords selling their buy-to-let

  • The number of landlords exiting the market decreased to four per branch in June.

David Cox

David Cox

Chief Executive

“It’s positive to see the number of properties available to rent slowly rising but it still isn’t anywhere near enough to slow down the pace of rent rises, which are continuing to climb.

“Over the last few years, we’ve seen taxes to both purchase and let a rental property increase. This combination – coupled with continued regulatory change – has unsurprisingly started pushing landlords out of the market. We predicted back at the end of last year that renters would be in for a rough ride in 2018, and we warned Government about the impact on the market. Our fears are now being realised and renters are suffering as a result.”