Private Rented Sector Report - November 2017

TENANT RENT INCREASES AT AN ALL TIME LOW DURING NOVEMBER 2017

Key Findings

  • The number of tenants experiencing rent increases fell to lowest level seen since records began three year ago
  • Supply of properties available to rent rose for the first time since July
  • Empty homes sat on the market for the longest period recorded in three years

Rent Prices

  • The number of tenants experiencing rent increases fell for the third month running in November, with just 16 per cent of agents reporting that landlords increased rents. This is the lowest level seen since records began in January 2015 – in November 2016, it also stood at 16 per cent
  • Month on month, this figure is down from 22 per cent in October, and 27 per cent in September
  • In line with this, the number of tenants successfully negotiating rent reductions jumped from 2.5 per cent in October to 3 per cent in November. This is the highest it has been since July and not far from the highest figure on record, when it stood at 3.6 per cent in March.  

Demand for rental properties

  • Demand dropped significantly in November, from 69 prospective tenants registered per branch in October, to 58.2

Supply of rental stock

  • The number of properties letting agents managed rose in November, for the first time since July to 192 per branch. This is up from the 12-month-low figure of 182 in October.

Empty properties

  • In November, the average time properties were empty between tenancies rose to four weeks – the highest recorded since records began three years ago. 

David Cox

David Cox

Chief Executive

“Consumer inflation hit a near six-year high last week, showing that the cost of living continues to rise for many. It’s therefore promising that despite this, the number of tenants having their rents increased has fallen over the last few months, demand has decreased, and the supply of rental stock is up. Looking to 2018 however, our members expect the supply of rental stock to fall, and rents to rise. The past few years have seen landlords inundated with various new laws and legislation and ultimately, it’s driving them out of the market and reducing rental stock. If we want to achieve equilibrium in the market, we simply need to increase stock.”