Private Rented Sector Report: August 2020

Demand from tenants highest ever on record

Key findings:

  • Number of new prospective tenants at an all-time high in August, with 101 registered per branch
  • Number of properties managed per branch remained the highest on record for August, with 208 properties available
  • Number of tenants witnessing rent increases back to pre-COVID levels, at 48 per cent in August

The number of new prospective tenants continued to rise in August, hitting the highest number on record with the average letting agent branch registered 101 new tenants, which breaks July’s previous record of 97 [Figure 1].

Regional Demand

Figure 1: Demand from tenants by region in August.

The number of rental properties available per letting agent branch in August was 208. This remained the same as the record high figure recorded in July, which beat the previous record of 192 properties managed per letting agent branch in July 2017.

The average tenancy length was at an all-time high for the month of August, with tenants staying in their properties for 21 months on average. Regionally, this figure was highest in the East Midlands with tenancies lasting 25 months and the lowest in the North East, with tenancies lasting an average of 10 months.

The number of tenants experiencing rent increases rose in August, with nearly half (48 per cent) of agents witnessing landlords increasing rent compared to 29 per cent in June and 39 per cent in July. Year-on-year, this is still 16 per cent lower than in August 2019, when the figure stood at 64 per cent.

Regional Demand

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

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I am thrilled to join Propertymark at such a pivotal juncture. Housing is arguably the most important portfolio within the economic playbook and I look forward to bringing my experience of regulation, Government oversight, and educational strategy along with my experience inside a number of different membership bodies, to bear on the next stage of the business’s development. I welcome the opportunity to work closely with members over the coming months to ensure that we continue to serve them and represent their interests, enforcing high standards, and playing our part in shaping housing policy.

Angela Davey

Angela Davey
ARLA Propertymark President