The level of supply in the private rental sector is showing signs of improvement, according to ARLA.

Its latest quarterly report reveals an increase in the average number of buy-to-let properties managed by ARLA Licensed members in the last three months, from 135 properties in the third quarter to 148 properties this quarter – an increase of almost 10%.

The survey also shows that ARLA agents believe that the number of landlords increasing their investment in buy-to-let is rising, with the number of landlords purchasing properties now exceeding the number selling their investments.

According to the survey, more prospective tenants are now haggling over asking price rents, taking advantage of a slightly less competitive market.

David Cox, managing director of ARLA, said: “This quarter we’re seeing promising signs that the market is taking small steps towards achieving a better balance between supply and demand, or at least it is easing slightly.”

HomeLet, the referencing company, said rental prices stood at £874 a month in November, 8.3% up on the same month last year when they averaged £807.

However, the firm said that despite strong annual growth, new rents agreed in September and October fell.