Demand from prospective renters hit a record high for the month of June, according to ARLA Propertymark’s latest Private Rented Sector (PRS) Report.
The average number of new prospective tenants registered per branch reached 88 last month – the highest figure on record for the month of June.
The previous June high was 79 prospective tenants registered per branch last year.
Regionally, the West Midlands had the highest number of new tenants registered per branch with an average of 128.
The report also shows that the number of tenants experiencing rent increases fell in June, with 60% of agents seeing landlords increasing rents compared to 68% in May.
However, year-on-year this figure is 2.1 times more than during June last year, and the highest figure on record for the month of June beating June 2019’s previous record of 55%.
The figures also reveal that the number of properties managed per letting agent branch fell from 203 in May to 184 in June. Year-on-year this is slightly less than during June last year when the figure stood at 200.
Regionally, Yorkshire & Humberside had the highest number of properties managed per letting agent branch with a figure of 288. However, rental stock was the lowest in London with an average of just 112 properties managed per branch.
The number of tenants successfully negotiating rent reductions fell from 0.9% in May to 0.7% in June. This is the lowest number recorded during the month of June since records began.
Mark Hayward, chief policy advisor, Propertymark, said: “It is brilliant to see rent continuing to flow this month with rent reductions at a record low for the month of June, showcasing the continuation of the current booming rental sector.
“We have a close eye on the overall sector for the rest of the year as the current strength of the sales market may be off-putting to private rental investors, and any potential impending taxation on property will be a consideration for all landlord types, but overall, it remains fantastic to see new potential tenancies at a monthly high for June.”
What are the consequences for the economy and housing if demand means the PRS is under rented by 20%? Average monthly rents should be £1200 not £1000, hardly bears thinking about.
Generation rent becomes Generation still at home as the shortage of accommodation means properties become tenant blocked
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If rents are rising, then they must be affordable.
what does “affordable” mean?
it means some people can afford to rent large houses, some can afford small houses and some can only afford to rent a room with a friend and still some can not afford to rent at all. Tenants look at their budgets and then choose accommodation.
“affordable” does not and should not mean “tenants choose the property they would like to live in, no matter how unrealistic and the government somehow finds a way to make that possible” (usually by harming landlords or developers which reduces choice for genuine tenants)
So if you’re worried about “affordability” which type of “affordable” are you lamenting the lack of?
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You have posted a reply to my post, I questioned the consequences for rising rents, I didn’t mention affordability.
Our democratic society works because some people have to have as much money and stuff as they can get their hands on. while others are happy to serve and clean up after them. If the people who are happy to clean and serve cannot afford to buy or rent near to where there are needed to clean and serve the cleaning and serving stops.
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Robert, the market is governed by supply & demand – this is the basic principle of our capitalist economy.
Our “democratic society” only comes into play when you’re talking about “affordable rent” so undercover agent’s response would still be valid.
Pertaining to people who “are happy to clean & serve” as you put it (somewhat derogatory but whatever), they would simply have to commute from wherever they can afford to. Employment is the biggest factor when it comes to relocation, to put it simply; you go where the jobs are – the market dictates its own terms and will find it’s own balance naturally. Trying to impose your own will on it is a surefire way to idiotic decisions (i.e. rent control).
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there is nothing derogatory about it at all, the whole estate, lettting and propertymanagement industry is a service industry, we serve principals who pay us to look after their property interests. B
If someone is employed to clean a school or hospital, paid minimum wage how practically do they commute? How viuable is it to work when commuting time and costs are considered?
The first signs of the affects of low interest rate policies are being seen in the staycation locations, pubs and resturants can’t open because of a lack of staff, the hour long bus ride to get to work, the ooh there isn’t a bus to get me home; the practical issues of no accommodation near work are an indication that somehow housing needs to be given more consideration than it is. there is little point in working if the money earned is spent on the commute.
I’m not imposing anything on anyone other than prompting the need to consider how all of this plays out.
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There is something derogatory in the way that you phrased it. People on minimum wage are not generally “happy” with that, however it is likely that those are the only jobs that they can get. To phrase it as their “choice” to do those jobs does them a disservice, however that is entirely off topic.
I understand that your original point is direct at housing as a whole and the remedy being that more housing stock is needed to remedy the matter. I believe we can all agree that this is the only long term remedy and any alternatives are merely a stopgap measure that will ultimately fail.
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Please believe no offence was intended. You’ve applied your experience and viewpoint rather than mine. I have relations quite happy in jobs that hardly cover their bills and living a modest lifestyle. I know qualified professionals who are far happier in roles well away from their training and profession, I know early exodus senior professionals into retirement who are simply escaping the grind of greed and stuff.
The point I’m raising for conversation is the consequence of rents raising beyond the means of ordinary people with ordinary jobs. What has happened to property purchase prices is now beginning to take hold of rental prices too, unless there is awareness of what is going on we will likely return to discontent of the late 70’s and 80’s
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Everything is affordable if you have enough money
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