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Rents for new UK tenancies stable in July
This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.
The total number of letting agents who experienced rent rises for their tenants stayed constant at 31% in July, according to the latest private rental survey from the Association of Residential Letting Agents.
This was a rise of 3% on the 28% seen in July, with the report also revealing a further increase in demand.
Demand Increases
In all, the number of properties managed per member branch rose slightly during July, up to 192 from the 190 recorded in June. This is the highest level seen since January, when agents were managing 193 on average.
Year-on-year, this figure rose by 4%, with July 2016 seeing agents managing 184 properties on average. Demand from new tenants rose to 70 in July from 61 in June.
Rents for new UK tenancies stable in July
David Cox, Chief Executive of ARLA, observed: ‘Landlords really are stuck between a rock and a hard place. All the tax increases they’ve incurred over the last 18 months have meant they either need to sell their properties and exit the market, or increase rent payments to plug the deficit.’
‘Neither of these outcomes benefit tenants. If landlords exit the market, supply is even more strained and matched with growing demand, rent prices will increase anyway. The Government may claim they are helping tenants but the unintended consequences of their actions on the private rental sector are now really being felt by tenants in terms of lack of homes to choose from and the feeling of being constantly priced out of the market. This needs to change,’ he added.[1]
[1] http://www.propertywire.com/news/uk/rents-new-tenancies-uk-stable-july-latest-agent-data-shows/
