Surging rental prices slowed compared to previous months in September
Rental prices in the UK's PRS have been rising for months, with tenants facing surges time and again throughout 2017. However, towards the end of summer, these increases started to subside, and the volume of price bumps actually falling in September.
According to new data from the Association of Residential Letting Agents (ARLA), the number of letting agents who witnessed tenants facing a growth in rental prices fell to 27 per cent in September.
This was markedly below the 35 per cent who said the same in August, and was also far lower than it has been for most of the year, when a relatively high number of tenants have been facing up to landlords increasing what they pay month on month.
ARLA said that a decline such as this, which was the same as recorded in May, is a good sign for the future of the market, as it suggests that prices are starting to settle down and the sector as a whole is maturing well.
However, it also said that price rises are still more prevalent than they were at the same time last year, and added that even though it's lower than earlier in the year, there are still a high number of people experiencing rising rents.
"While it’s great that month on month we’re finally seeing a decrease in the number of landlords hiking costs, we need to look at the bigger picture. There are still more than a quarter of tenants experiencing rent hikes every month and that’s too high," said David Cox, ARLA chief executive.
And while price increases have indeed fallen towards the end of the summer months, there's still a worry that moving forward, they will be heading up again, especially with ARLA reporting that demand for rented properties is only likely to increase further in the next few months.
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27-October-17General Lettings News