Letting Agents Confirm PRS Rents Are Rising Again
The latest report from the Association of Residential Letting Agents has discovered that 36% of ARLA registered letting agents reported private rented sector rent increases in June, taking PRS rental prices to their highest point since records began.
80% of ARLA letting agents surveyed expected private rental sector rents to continue to grow significantly over the next five years.
East Midlands letting agents reported 48% of tenants were charged increased rents, while letting agents in Wales only recorded 17% of tenants facing increased rental charges.ARLA Managing Director, David Cox, (right), expressed concerns that the rise in rents may be unsustainable in the marketplace, stating: “Findings like this continue to prove that the housing crisis isn’t going to disappear anytime soon and it will take a while before we see steps heading in the right direction. The impact of the Chancellor’s reductions to the amount of tax relief buy-to-let investors can claim will affect the cost of renting over the coming months and is likely to mean it will take even longer to see any improvement in affordability in the private rented sector,” he added.
In terms of property supply and demand, ARLA member letting agency branches were managing an average of 178 properties in June, down from 179 per branch in May each with an average of 36 prospective tenants registered, unchanged from the previous three months.
In London, the supply of properties coming to market dropped by 12% compared to May 2015, with the average branch in the capital only managing 118 rental properties.
The summer holidays has seen an increase in the number of properties offered as short-term lets, with over 30% of letting agents reporting a rise in the number of enquiries for short term tenancies.
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