The number of properties per branch available to rent hit a record high in March.
ARLA Propertymark is warning this could be a sign of agents merging, rather than overall supply going up.
The trade body’s March private rented sector report found that rental supply rose to 203 properties per member branch in March from 197 in February.
It is the highest figure since records began in 2015, and is up 13% on a year ago.
Demand from prospective tenants also increased from 65 to 67 between February and March.
Meanwhile, the number of tenants experiencing rent rises ahead of the ban continued to be high with 30% of agents witnessing landlords increasing rents, similar to the 34% in February and markedly up from 23% last year.
David Cox, chief executive of ARLA Propertymark, said: “Whilst it’s really positive that the number of properties available per branch hit a record high last month, this may be the first signs of the industry consolidating ahead of the tenant fees ban as agents either sell up or merge.
“This, coupled with landlords exiting the market and rent costs continuing to rise, means the overall picture is far from positive for renters.
“The full effects of the tenant fees ban have not yet been felt, and now the Government is introducing yet more new legislation which will deter new landlords from entering the market, such as abolishing Section 21.
“Until we have greater clarity on the changes planned, this news will only increase pressure on the sector and discourage new landlords from investing, meaning rents will only continue to rise for tenants.”
Beginning to think that MP’s should take an IQ test before being selected as a candidate. This current crop are a complete joke.
Surely it wouldn’t take much interrogation of the figures to confirm that the increase per branch is as a result of consolidation?
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Never thought that I would see the words MP and IQ in the same sentence!
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Billy Connolly famously stated ‘The desire to be a politician should bar you for life from ever becoming one.”Don’t vote. It just encourages them….’
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Increase in supply is more likely from a slowing sales market.
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Has everyone forgotten about the glut of property that came onto the market in the rush to beat 2016 SDLT surcharge? This annual spike in stock still exists.
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It’s because tenants are waiting for the fee ban to kick in before they move!!
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Agents consolidating, vendors looking at let to buy as a result of a slower sales market, could be one of a myriad of reasons. As RichardHill61 has said if I’m a tenant looking to move I’m sure going to wait for the fee ban to kick in rather than shell out an extra £500+ !
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