The number of new prospective tenants surged to an all-time May high as the government continued to ease Covid-19 restrictions, new figures show.
According to the latest data released by ARLA Propertymark, the average branch registered 97 new tenants, compared to 82 on average in April.
Year-on-year this is the highest figure on record for the month of May, with the previous May high being 70 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 132.
The number of tenants experiencing rent increases rose slightly in May, as 68% of agents saw landlords increasing rents compared to 67% in April.
Mark Hayward, chief policy advisor, Propertymark, said: “Yet again we continue to see incredible demand from tenants with a record-breaking number of new prospective tenants registered per branch for the month of May, showcasing the continuation of a booming rental market.
“We will be keeping a close eye on the sector in the coming months 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 rent continuing to flow this month.”
Comments (1)
Rental demand is obviously booming due to insufficient rental stock.
That is because LL are selling up.
Tenant demand will continue to increase exponentially as more LL leave the sector.
Only mug LL will invest and that is because they know nothing of what is due to happen in the PRS let alone all the current anti-LL policies.
Shrewd LL are investing away from single household AST.
As an example a 4 bed House which WON’T be subject to any Mandatory HMO Licence can easily achieve £750 inclusive per room in my area.
Just have room AST.
So about £3000pcm minus bills of about £300 leaves about £2700.
Not achievable with a single household AST.
It is single households that will remain homeless.
They are simply not viable when there is much demand for AST rooms.
LL aren’t going to bother with 5 bed houses and they will avoid Additional and Selective Licensing areas.
Forgot to factor in a weekly cleaner at about £100.
So about £2600 net.
No idea what the tax would be on that but definitely more net income than letting on a single AST household.
You will find LL selling off and converting to 4 bed houses.
Others will go for FHL and SA.
Already happens near me.
Means a total loss to single AST households.
Their demand will naturally increase.
Financially it makes far more sense to have room AST especially with the dysfunctional eviction process.
At least if one tenant rent defaults hopefully the other 3 WON’T!