Demand for rental properties reached the lowest level on record in December, ARLA statistics suggest.
Members of the trade body recorded 26 prospective tenants per branch, the lowest level since ARLA started recording the data in January 2015 and down from 32 a month before.
While this may sound bad, it is just below the 29 recorded in December 2015.
There was better news on the supply side with the number of rental properties managed per branch increasing from 185 in November to 188 in December, but 46% of agents expect to see supply decrease this year.
The number of letting agents witnessing rent hikes for tenants increased by three percentage points in December to 19%.
In December 2015, the number of rent rises fell month on month from 23% in November 2015 to a similar 18% in December.
David Cox, managing director of ARLA, said: “Although December’s figures could indicate a bright future for renters, with the Government’s impending ban on letting agent fees, the future is actually rather bleak for the UK’s renters.
“Although we saw demand fall and supply rise slightly last month, these are in line with seasonal expectations and is what we expect to see in December.
“If the Government goes ahead with an outright ban on fees, tenants will unfortunately be the ultimate victims, as costs are recouped for the vital services fees cover.”
Not sure where ARLA gets all its BS numbers from? Anyone?
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123430
From the ARLA monthly survey that gets sent out to accredited members that run multi branches and independents. Whilst some stats won’t apply to some businesses as every company differs in its geographical location, marketplace, availability of stock and other affecting factors.
For my area this is a VERY accurate report.
I hope this helps answer your question?
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Thanks. It’s more a rhetorical question. Who/What agency in the UK have 188 rental listings per branch? Even Foxtons only have about 30 (rental) per branch at most. If this is just an average number, this is ridiculous. Hence where do they get their numbers from?
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123430
you’ve misinterpreted it. It doesn’t say “188 rental listings per branch” it says “number of rental properties managed per branch”
MANAGED being the word which means managed units in the portfolio not “LISTINGS”
If you’d like I can send you a copy of Decembers PRS report if you are a paying ARLA member?
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Thanks. Lets put it another way. If the average listing/managed property per branch is 188 (for the year, +/- a few), with an average fee of £1700 per property (let and then managed or renewed) (according to Tony McVeigh at the failed Jacksons Estate Agent in London), that brings a total of about £319,600 turnover average per branch in Lettings/management only. If each branch only employs a couple of negs, manager and a couple of property managers, no ARLA agent would be in financial difficulty based on their stats. This is however not the case in this market.
The point is. The sample size of this cannot be reflective of the actual market.
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I disagree because I feel it is reflective of the current market. The survey was done nationwide in U.K.
My stats are
average rent £710 average fee 10% portfolio size 179
you need to factor in landlords ending management and overheads etc
We as an ARLA agent would face financial difficulty as soon as the fee ban comes in as it wipes out majority PROFIT.
My branch consists of two negs and myself managing with a property management centre to contribute to.
Therefore all circumstances are different but averaged out against stats in London compared to the lower end in the midlands this is about as accurate report as you’ll get.
or you could go to LSL or shelter and see what kind of stats they report.
Personally in my experience homelet who do over 40,000 references a month and ARLA who promote and employ industry professionals are the ones to listen to regardless of ones own branch.
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My take on these stats about lower demand is down to lack of supply; if you do not have the stock there is little to encourage enquiries. That is the likely case for me anyway.
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