Private Rented Sector Report, December 2020

Less than a third of agents saw rents increase in December

Key findings:

  • The number of new prospective tenants fell during the month of December
  • The number of properties managed per branch decreased
  • Less than a third of agents witnessed landlords increasing rents in December

Rent prices

  • Less than a third (30 per cent) of tenants experienced rent increases in the month of December. This figure is slightly higher than the 28 per cent of agents witnessing landlords increasing rents in November, and the first time this figure has risen in four months.
  • This is still seven percentage points lower than October’s figure of 37 per cent and 10 percentage points lower than September, when the figure stood at 40 per cent.

Demand from tenants

  • The number of new prospective tenants fell slightly in December to an average of 64 registered per branch from an average of 65 in November.
  • Year-on-year this is eight per cent higher than in December 2019 when the figure stood at 56.
  • Regionally, the West Midlands had the highest number of new tenants registered per branch with an average of 87. London had the second highest figure of 73 new tenants registered per branch in December.

Supply of rental stock

  • The number of properties managed per letting agent branch fell by five per cent from 214 in November to 204 in December.
  • This is a decrease from December 2019, when there were 206 properties managed per branch. 

Rent hikes

Figure 1: Number of tenants experiencing rent rises year-on-year in December

Landlords selling BTL properties

  • The number of landlords selling their buy-to-let properties remained the same as November at four per branch in December. Year-on-year this is the same figure as during December 2019.

Quote mark

The slight fall in prospective tenants and properties managed per branch during the month of December is consistent with the usual seasonal lull, and testament to the current steady rental market. Letting agents are continuing to support landlords and their tenants during these ongoing difficult times, and it is imperative that tenancies are maintained to keep the rent flowing. The continuity of the private rental sector is vital to the nation’s economic bounce back from the COVID-19 pandemic.

mark Hayward

Mark Hayward
Chief Policy Advisor 
Propertymark

 

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