ARLA Propertymark has urged the Government to think carefully about reforming Section 21, with the Queen’s Speech today expected to confirm legislation to end the eviction notices.

The trade body warned that supply will plummet if changes to Section 8 are not also made.

It comes as ARLA Propertymark data reported that fewer members saw landlords raise rents last month.

The ARLA Propertymark Private Rented Sector report for November showed that the number of tenants experiencing rent rises fell by 18 percentage points in November with 32% of letting agents witnessing landlords increasing them compared with 50% in October.

This is the lowest figure since March when the number stood at 30% but is still above the 21% recorded in November 2018.

The data also showed a fall in tenant demand for the third consecutive month, with 67 prospective renters per branch in November, down from 72 a month before.

Rental supply rose from 201 to 203 properties per branch between October and November, up from 183 last year.

David Cox, chief executive of ARLA Propertymark, said it was good news that fewer agents are reporting rent increases but highlighted that demand was also falling.

He said: “The ongoing uncertainties of Brexit and the General Election have caused people to hold off on their property search until some political clarity is reached, which has led to this fall in demand.

“Now that the election has brought some political stability, tenants will likely be looking for properties again and the new government must recognise the importance of making the market attractive for both tenants and landlords.

“They must be very careful about reforming Section 21 which could cause supply to plummet, and if it is to be abolished, Section 8 must be reformed first and a new specialist housing tribunal created.

“Without this, supply will almost certainly fall which will have the consequential effect of raising rents.”

Meanwhile, ONS data released yesterday showed average rents rose 1.4% annually last month, up from 1.3% in October.

In England, private rental prices grew by 1.4% in the 12 months to November, unchanged since October.

Rents in Wales grew by 1% annually, from 1.2% in October, while the rate of growth in Scotland was 0.9% in the 12 months to November, up from 0.7% in October.

Northern Ireland had the highest rate of growth of the regions at 2%.