The supply of available rental property has fallen, says ARLA.

It says the number of rental properties available per branch in May dipped 7% to the lowest level this year.

According to ARLA, there were just 179 properties managed per branch last month – and an average of 134 in London.

While supply dipped, demand remained the same, with 36 potential tenants registered per branch in May.

One third of ARLA agents also reported rent increases last month.

This figure has been slowly creeping up from the start of the year, when 27% of agents reported hikes for tenants.

Tenants in the south west were the most affected by monthly rent increases, with just under half (49%) of agents reporting an increase. Three quarters (76%) of ARLA member agents nationally, predict that rents will continue to rise over the next five years.

David Cox, ARLA managing director, said: “It is worrying to see that there such a sharp decrease in supply, when we know there is already a struggle to meet housing needs.