More letting agents experienced a rise in price in July than last year
The number of letting agents who saw their tenants paying more for new tenancies was at a similar level in July as recorded in June, new data shows, but rents are rising faster than they were one year ago.
According to the latest report released by the Association of Residential Lettings Agents (ARLA), almost a third of letting agents surveyed (31 per cent) said they had seen a rise in the price of new tenancies in July. This was the same as recorded in June this year, as well as being a marked increase over May, when some 27 per cent said the same.
And according to the report, rents are also rising for new tenancies at a faster rate than they were last summer, when the ARLA data showed that 28 per cent of letting agents were experiencing a rise in price.
This spike in rental price rises this June and July has been put down to the fact that the demand from tenants is continuing to climb as more and more people choose to live in private rented homes rather than buying their own property.
The data shows that in July this year, the average branch ad 70 new tenants coming in for properties, compared to an average of just 61 last year. It marks a significant rise, so it's no surprise that the price they have to pay when becoming a tenant has climbed too.
"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," said David Cox, ARLA chief executive.
"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," he added.
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24-August-17General Lettings News