Private Rented Sector Report - September 2018

RATE OF RENT INCREASES CONTINUES TO RISE YEAR-ON-YEAR

Key Findings

  • The number of tenants experiencing rent hikes remained high in September
  • Demand from tenants looking for new homes continued to drop, while the number of properties letting agents managed also fell

 

Rent prices

  • Year on year, the number of tenants experiencing rent hikes continued to rise. Almost a third (31 per cent) of renters saw their payments increase in September 2018, compared to 27 per cent in 2017 and 24 per cent in 2016
  • Looking at shorter term trends however this figure is down; in August this year, agents reported a record-high for the number of rent rises for tenants (40 per cent).

Rent Hikes

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

Demand from tenants

  • Demand from prospective tenants fell marginally in September, with the number of house-hunters registered per branch dropping in 63 on average, compared to 64 in August
  • Year on year, this is down 20 per cent as there were 79 prospective tenants registered per letting agent branch in September 2017. 

Supply of rental stock

  • As landlords continued to leave the market, the supply of properties letting agents managed dropped to 194 per member branch in September, from 197 in August.

David Cox

David Cox

Chief Executive

“Although the number of landlords increasing rents for tenants dropped in September, this figure is still alarmingly high, and it continues to rise year on year. Increasing costs and continued regulatory change is pushing buy-to-let (BTL) investors out of the market and deterring new ones from entering. An average of four landlords took their properties off the market per branch in September, up from three this time last year – and as supply falls, competition among tenants increases, which is driving up rent costs. With the Autumn Budget approaching, we hope the Government recognises the importance of increasing supply for tenants and uses it as an opportunity to make the market more attractive for BTL investors.”