Rent prices rising as landlords continue to exit the private rental market

Nearly six in ten (58%) letting agents are seeing a rise in rent prices.

Year on year, the proportion is up from 31% in September last year and 27% in 2017.

ARLA has also reported that the number of properties managed per branch fell slightly, to 193 in September, down from 197 in August.

Tenancy demand fell to 72 applicants per branch, down from an average of 76 in August.

ARLA Propertymark chief executive David Cox said: “Rent prices remain alarmingly high as they have done since the Tenant Fees Act came into effect.

“It’s also concerning to see that the properties managed per letting agent branch has fallen.

“As supply falls, competition amongst tenants increases which further drives up rent costs.”

The latest figures are based on responses from 230 ARLA members to an online survey between October 1 and 17.

The survey also showed that an average of four landlords per branch quit the market in September.

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3 Comments

  1. Realitycheck97

    I keep saying it. Where is the impact assessment, by government, on the cumulative effect of policies to date? Then the impact of proposed policies?

    This government would end s21. The other lot would go further and ‘stabilise’ rents.

    I’m getting ready to evict my tenants (unless they want to buy) and sell up. And there’s very little stock for them to move to, at their expense. They’ll certainly be paying more in their new place.

    Dear government/potential government. Could you try evidence-based policy making please?

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    1. Will2

      I do not think you are on your own.  The Cons are abolishing s21 and Assured Shorthold Tenancies and this is cross party so is likely to happen.  I suspect many landlords are holding fire until it has been confirmed; in so far as many do not believe the Conservatives can be so stupid. They are and will be.  The marxist party mascarading as the labour party will, if they get power, see a mass exodus of landlords and they will need to put the country “in hock” to deal with housing let alone re-nationalise everything.  Our young virgin voters will not see this and many will have fogotten when labour left office last time the coffers were emptied; but will believe utopia exists – because that is what they would like to think exists.

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  2. Woodentop

    There has been no foresight by any government and pressure groups that they are actually killing off PRS and making tenants homeless by pandering to political ideology. That isn’t to say that some things didn’t need changing but has anyone of them actually sat down and worked out the real effect they are doing to landlords and agents.

     

    It is reported that 90% of landlords are amateur with one of two properties rented. Many have no wish to get involved in being told what they can or cannot do with their property. AND do they have some rules and regulations to comply with. It is a very long list and many private landlords haven’t a clue or want to know, leaving it to agents who now find themselves working for nothing! If it wasn’t for the many lettings agents doing all the work for them, we probably wouldn’t have as many properties in PRS today market.

     

    That is about to change! Agents and landlords overheads are on the increase. Regulatory requirements and costs are on the increase. 50% of our time is taken up with admin to keep compliance with laws and licensing requirements before we even start to manage a property! We won’t go to how much the overheads are being charged for that lot to be kept happy, we would be here all day.

     

    Where does all the money come from to cover those overheads, as well as normal business overheads? = Rent

     

    Many tenants are at bursting point and for many in arrears and shouldn’t be in PRS. Just wait till Corbyn & Co implement their rent capping, Right To Buy, protected tenancies etc, landlord will leave in their droves.

     

    You don’t need to switch the light off on the way out, you haven’t been able to pay the electric bill.

     

     

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